Tesla and India Discussions Hit ‘Weird Stalement Situation’: Report

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Tesla’s discussion with the government of India over lowered import duty costs has not made progress, according to those familiar with the matter and as reported by Reuters.

The government is still holding off on offering tax breaks to Tesla until the U.S.-based automaker commits to manufacturing goods locally.

One source with direct knowledge of Tesla’s side of the matter said that talks with India’s government have led to a “weird stalemate situation,” also emphasizing that the automaker is not any closer to expanding into the country.

In a statement, the person said, “Things are not moving ahead (for Tesla).”

India has an import tax of up to 100% on electric vehicles, which consists of the vehicle’s price and shipping charges of $40,000 or more. That would set prices for India as the highest in the world for a Tesla vehicle.

Last year, India’s government made it clear that it would require Tesla to provide local sourcing plans and a business roadmap before considering tax breaks.

Earlier this month, however, Tesla Head Elon Musk said the automaker was still “working through challenges with India’s government,” responding to one user asking when the company will expand to India.

The Indian government’s requests for Tesla to source hardware locally support Prime Minister Narendra Modi’s “Make in India” plan, which emphasizes locally-sourced parts and the creation of jobs.

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