Talks between India and 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.
The logo of car manufacturer Tesla is seen at a dealership in London, Britain, May 14, 2021. REUTERS/Matthew Childover 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.lobbied officials
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. The third source said Tesla has told officials it is open to sourcing more auto components locally and eventually moving towards manufacturing, but the government sources have indicated they want firm commitments.
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