Tesla has requested PMO to cut import duty on Electric Vehicles (EVs) before joining the market. Tesla desires to sell imported cars in India by this year but says taxes are high. Its urges for tax cuts, which raised questions from many local automakers as they say that this move will prevent investment in local manufacturing.
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Tesla has requested a meeting between its CEO Elon Musk and PM Modi to discuss this issue. Indian car manufacturers like Tata Motors had recently raised $1 billion to promote EVs production locally. Reducing duties to import Tesla cars is against India’s plans to boost local EV manufacturing. The transport minister said this month Tesla should not sell imported cars in India and should manufacture locally instead. Musk had said on Twitter in July that “if Tesla succeeds in bringing imported EVs, then a factory in India is very likely.”