Tesla revives import duty talks with India

Over a year ago, talks on lowering duties for EVs had hit a roadblock

- Alisha Sachdev

American electric car maker Tesla is once again negotiating an import duty reduction on electric cars with the Indian government, reinstating its previous position of wanting to test demand in the market before setting up manufacturing here.

Over a year ago, talks between the world's largest-selling passenger EV maker and the Centre reached a stalemate as the government refused to consider its demand for lowering duties on imported electric cars unless it firmly committed to setting up a manufacturing facility in the country.

However, people with knowledge of the matter indicate that Tesla's position is now less conservative than it was earlier, as the company explores manufacturing in various South East Asian regions that have emerged as significant electric car markets over the past decade.

Nonetheless, Tesla still requires an import duty exemption to properly assess both the demand for their vehicles and the feasibility of establishing a production plant in the region.