By Aditi Shah
NewDelhi – Tesla Inc. It has put on hold plans to sell electric cars in India, has given up looking for an exhibition space and re-appointed some of its domestic board for failing to get lower import taxes, they told Reuters three people familiar with the matter.
The decision puts an end to more than a year of stalled negotiations with Indian government representatives as Tesla initially sought to test demand by selling electric vehicles imported from manufacturing facilities in the US and China at low rates.
But the Indian government is pressuring Tesla to promise to produce domestically before reducing tariffs on imported vehicles by more than 100%.
Sources close to the US company’s plan told Reuters that Tesla has set a deadline of February 1, the day India releases its budget and announces tax changes, to see if its campaign is working.
Tesla has stopped importing cars in India due to Prime Minister Narendra Modi’s government’s failure to make concessions.
Tesla has been looking at real estate options for months to open showrooms and service centers in major Indian cities, including New Delhi, Mumbai and Bangalore, but that plan has now been put on hold, according to two sources.
Tesla did not respond to a Reuters email requesting comment.
An Indian government spokesman did not immediately respond to a request for comment.
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