Elon Musk led Tesla desperate to sell in India, but wants break from govt's iPhones like stand

tech.hindustantimes.com:

Talks between India and Elon Musk led Tesla Inc over potential tax benefits are deadlocked as the government is not keen to give the company any breaks without a commitment to manufacture locally, people familiar with the discussions told Reuters. Tesla is desperate to import and sell its electric vehicles in India and has for nearly a year lobbied officials in New Delhi to reduce tariffs, which the company's billionaire CEO Elon Musk says are among the highest in the world. The government here has in the past taken a hardline approach against demands by foreign companies as it focuses on boosting local production. In 2017, Apple sought tax concessions, including lower import duties, to make iPhones locally, but many of its demands were rejected by Modi's officials.

But Indian official sources said they have been unconvinced by Tesla's lobbying as the company has not yet shared any firm plan to invest in the country, something that would be in line with Prime Minister Narendra Modi's "Make in India" vision to boost local manufacturing and create jobs.

A third person with direct knowledge of Tesla's thinking said the discussions with the Indian government have reached a "weird stalemate situation".

"Things are not moving ahead (for Tesla)," said the person.

The sources declined to be identified as the discussions are private.

The apparent deadlock could upset the electric carmaker's ambitions for the South Asian country as it was pinning hopes on lower import taxes to make its cars more affordable and the business viable.

Currently, India levies an import tax of as high as 100% on electric vehicles which have a so-called landing cost -- a car's price plus inbound shipping charges -- of $40,000 or more.

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