India is considering a request from Tesla to lower tariffs for imported electric vehicles, according to Indian government officials, as Elon Musk’s company explores setting up a plant in the country.
Tesla has asked New Delhi for an initial tariff concession that would allow it to offset India’s steep customs duty of 70 per cent for cars worth less than $40,000, and 100 per cent for cars worth $40,000 or more, according to two officials with knowledge of the matter.
“Their view has always been that they need some tariff concessions at least in the interim period,” one of the officials said. He added: “It would have some kind of sunset clause.”