According to Indian government officials, India may partially waive Tesla, Inc..Import tariffs allow its electric vehicles to enter the Indian market.
The Indian government is open to offering tax breaks to Tesla, Inc., but the company led by Mr Musk needs to provide a detailed investment plan before making any decision, the officials said.
"We can offer some relief," said an official who spoke on condition of anonymity. But we need to know what their plan is. "
Tesla, Inc. sent a letter to Indian Prime Minister Narendra Modi in July, hoping to reduce the import tariff on electric vehicles from the current 60 per cent to 40 per cent and to abolish the 10 per cent social welfare surtax.
Tesla, Inc. claimed that it had so far purchased $100m worth of parts from India and said that figure would increase after any tax breaks.
The company said it planned to make significant direct investment in sales, services and charging infrastructure and to consider broader manufacturing investment after receiving tax breaks.