NEW DELHI: Talks between India and Tesla for the potential benefits of deadlocked tax because the government is not interested in providing companies every rest without commitment to producing locally, people who are familiar with the discussion to Reuters.
Tesla desperately to import and sell its electric vehicles in India and have a lobby official who is almost a year in New Delhi to reduce the tariff, which the CEO of the Billionaire Company Elon Musk is among the highest in the world.
But the official source in India said they were not sure of the Lobby of Tesla because the company had not shared a company’s plan to invest in the country, something that would be in line with the vision of “Make In India” Prime Minister Narendra Modi to improve local manufacturing and create work.
The third person with direct knowledge of Tesla’s thoughts said discussions with the government had achieved “strange deadlock situation”.
“Things don’t move forward (for Tesla),” said the person.
Sources refuse to be identified as a personal discussion.
The deadlock that appears can interfere with the ambition of electric car makers for the South Asian country because it has hopes for lower import taxes to make the car more affordable and its business is feasible.
At present, India collects an imports tax as high as 100% on an electric vehicle that has what is called landing fees – car prices plus the cost of shipping – for $ 40,000 or more.
This will make the most expensive Indian market for Tesla cars in the world, placing them far from reach for most Indian consumers.
The third source said Tesla had told the official, it was open to finding more automated components locally and eventually moved towards manufacturing, but government sources have indicated strong commitment.
“If they don’t want to invest anything here, how will the model work,” said a senior government official, who added that the wound in import duty was “very impossible” in the near future.
Tesla did not respond to a comment request.
The Ministry of Finance and the Ministry of Trade and Industry, all of which reviewed Tesla’s demands, did not respond to requests for comments.
However, the hardline approach has tackled his hopes on the upcoming budget on February 1 – when such tax changes are usually announced – to see whether the lobby produces any results, or then rethinking how he wants to approach the Indian market, the third source and the fourth people are conscious Will the company plan.
In his latest boost, Tesla recently met officials from the Ministry of Taxes and Customs, the fourth source said.
This had previously met the Modi office and was looking for a meeting to Musk with the Prime Minister to discuss his plans for India.
The government in the past takes a hard-line approach to demands by foreign companies because it focuses on increasing local production.
In 2017, Apple was looking for a tax concession, including lower import duties, to make the iPhone locally, but many demands were rejected by Modi officials.
The previous Musk said on Twitter that Tesla could consider building a car in India if it managed to sell imported.
He tweeted last week the company “still worked through many challenges with the government.”