[1/2] Visitors check out a Tesla Model 3 car at a showroom of the US electric vehicle (EV) maker in Beijing, China, February 4, 2023. REUTERS/Florence Lo
NEW DELHI, May 18 (Reuters) – Tesla Inc ( TSLA.O ) asked how it could participate in domestic incentives in India related to car and battery manufacturing when it held talks with government officials this week, a a source with direct knowledge of the talks told Reuters.
The electric car maker proposed setting up a factory in India to build electric vehicles (EVs) and also discussed plans to locally manufacture electric vehicle batteries, the person said.
The proposal comes after talks between Tesla and India stalled last year over the carmaker’s request to reduce the car import tax, which can be as high as 100%. India wanted the automaker to build vehicles locally, but Tesla wanted to test the market first with imports.
Tesla also discussed taxes on importing cars from India, but the talks mainly focused on understanding local policies and incentives for setting up a new factory, said the source, who declined to be named because the conversations were private.
Reporting by Aditi Shah and Aditya Kalra; Editing by Jacqueline Wong
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