Tesla puts India entry plan on hold after import duty talks hit deadlock
Tesla abandoned its search for showroom space and reassigned some of its domestic team after India did not provide any import tax concession
By Arghyadeep Dutta
Published - May 13, 2022, 05:45 PM ET
Last Updated - Feb 27, 2024, 02:55 PM EST
Indian government charges 100% import duty on vehicles manufactured abroad
Tesla Inc (NASDAQ: TSLA) has put the plans to sell electric vehicles in India on hold after failing to secure lower import taxes, Reuters reported on Friday, citing three people familiar with the matter.
The decision came after more than a year of deadlocked talks with the Indian government representatives.
While Tesla sought to first test the demand for its EVs by selling the imported cars produced in the United States and China at lower tariffs, the government pushed the carmaker to commit to manufacturing locally before lowering the taxes.
