SAN FRANCISCO: US automaker Tesla has asked how it could take part in domestic incentives in India related to vehicle and battery manufacturing when it held discussions with government authorities this week, a source with direct knowledge of the talks told Reuters.
The electric vehicles maker proposed setting up a factory in India to build electric vehicles (EVs) and discussed plans to manufacture EV batteries locally, the person said.
The proposal comes after talks between India and Tesla were deadlocked last year over the vehicle maker’s request to lower the import tax on cars, which can reach as much as a hundred per cent. India wanted the vehicle maker to build cars locally, but Tesla company wanted to test the market first with imports.
Tesla discussed India’s import taxes on cars, but talks mainly centred around understanding the local policies and incentives to set up a new firm, said the source, who declined to be named as the negotiated were private.
