Tesla CEO Musk and Prime Minister Narendra Modi’s administration have been in talks for years.
But disagreements over a local factory and the country’s import duties of as much as 100% have led to an impasse.
Elon Musk has wanted to sell Tesla Inc. cars in India as early as 2019.
However, the U.S. electric-vehicle pioneer is not much closer three years later.
Elon Musk
“Still working through many challenges with the government.”
Elon Musk said in a Twitter post early Thursday in Asia, replying to a user who had asked if there was any update on Tesla’s launch in South Asian nation.
The government has asked the EV maker to ramp up local procurement and share detailed manufacturing plans.
Elon Musk has demanded lower taxes so that Tesla can start by selling imported vehicles at a lower price in a budget-conscious market.
The Indian minister said he had asked Tesla to avoid selling China-made cars.
Moreover, urged the automaker to manufacture, sell, and export vehicles from a local factory.
With a population comparable to China, India is an up-and-coming market for EV makers.
However, the country’s roads are still dominated by cheap, no-frills cars made by the local units of Suzuki Motor Corp Hyundai Motor Co.
Tesla will also face competition from other foreign players, including Mercedes-Benz.
Which announced Wednesday that it would roll out a locally assembled EQS.
The electric version of its flagship S-Class sedan in India by the fourth quarter.
Though India has vowed to turn net carbon zero by 2070.
Moreover, the government is looking to bolster the sale of electric vehicles. However, its green transition is still at a nascent stage.
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