Tesla Lobbies Indian Prime Minister's Office To Slash Taxes Before It Enters Market

Tesla Inc TSLA, which aims to start selling imported cars in India this year, is lobbying Indian Prime Minister Narendra Modi's office to slash import taxes on electric vehicles before entering the market, according to Reuters. 

Tesla believes that the import duties in India are the highest in the world. It says that India's duty structure would not make its business in the country a "viable proposition."

In July, Tesla CEO Elon Musk tweeted, "import duties are the highest in the world by far of any large country. Moreover, clean energy vehicles are treated the same as diesel or petrol, which does not seem entirely consistent with the climate goals of India."

Tesla's request for a tax cut has raised several questions among the domestic manufacturers regarding their investment in the country. 

The company's India representative Manuj Khurana has discussed the tax rebate issue with the prime minister's office and had a closed-door meeting in September.  

Reuters reports that Tesla has requested a meeting between Elon Musk and Prime Minister Narendra Modi. 

According to the transport minister of India, Tesla should not sell made-in-China cars in India and should manufacture locally instead. Still, Tesla has indicated it first wants to experiment with imports.

One government official has said that lowering duties for a limited period to pave the way for Tesla's entry could "boost India's investor-friendly image and green credentials" while also attracting more investments.