Tesla continues efforts to have Indian government lower EV import taxes

Tesla Model X in India
The first Tesla imported into India in 2017

Months after their first discussions began, Tesla is continuing to urge the Indian government to lower import taxes on electric vehicles (EVs) so it can launch sales in the country.

According to several sources who spoke with Reuters, Tesla executives met with officials in Indian Prime Minister Narendra Modi’s office last month. One source said Tesla argued the taxes were too high and would make any venture by the automaker unviable.

Tesla has previously asked for the import tax rate to be reduced from 100% down to 60% for EVs over $100,000. For EVs priced below $40,000 they are seeking a reduction from 60% down to 40%.

The government did not respond to a request for comment on the discussions. However one source said officials are still divided on whether to lower the import taxes.

India open to lowering import taxes on EV, but they want to see Tesla’s plans first

Tesla still hopes to enter the market this year, and has requested a meeting between Prime Minister Modi and CEO Elon Musk to discuss the issue further.

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