Four sources told that Tesla has urged the prime minister’s office to cut its import taxes before electric vehicles enter the market, which has increased the demands of some Indian automakers to oppose it.

Tesla hopes to start selling imported cars in India this year, but said that the country’s taxes are the highest in the world. Its demand for tax cuts — first reported in July — drew opposition from several local companies, who said the move would hinder investment in domestic manufacturing.

Four sources familiar with the discussions said that Tesla executives, including its head of Indian policy Manuj Khurana, presented the company’s request to officials of Prime Minister Narendra Modi in a closed-door meeting last month. Said taxes are too high. One of the sources said that at a meeting in Prime Minister Modi’s office, Tesla stated that India’s responsibilities structure would not make its operations in the country a “viable proposal”.

India imposes a 60% import tax on electric vehicles with a price of 40,000 US dollars or less, and a 100% import tax on electric vehicles with a price of more than 40,000 US dollars. Analysts said that at such prices, Tesla cars will become too expensive for buyers and may limit their sales. Three sources said that Tesla also separately asked its CEO Elon Musk to meet with Prime Minister Modi. PM Modi’s office and Tesla, as well as its executive officer, Mr. Khurana, did not respond to requests for comment.

It is not clear what Modi’s office specifically told Tesla’s response, but four sources told that government officials differed on the US automaker’s requirements. Some officials hope the company will commit to local manufacturing before considering any import tax relief.

News Source : NDTV