Tesla's India Entry Uncertain as Import Duty Deal Falls Through

Despite potential factory deal, Tesla's hopes for import duty exemption dashed as government insists on local manufacturing first.

Tesla's plans to enter the Indian market are on shaky grounds as the government has stated that a deal on import duties for electric vehicles is off the table.
The Indian government wants Tesla to build a factory in the country before entering the market, but Tesla prefers to first test the market with imported vehicles.
Despite a potential $2 billion deal to build a factory in India, Tesla's hopes for an exemption on import duties for its electric vehicles seem to have been dashed.
Tesla and India were reportedly close to an agreement that would allow Tesla to sell its cars in India from next year and set up a factory within two years.
India's Trade Minister Piyush Goyal has stated that Tesla plans to double purchases of auto parts from India to $1.9 billion this year.