Tesla founder and CEO Elon Musk on Thursday informed his company was facing a ‘lot of challenges’ for its car launch in India.
“Still working through a lot of challenges with the government," the 'technoking' of Tesla tweeted.
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Tesla wants to begin selling imported cars in India this year but says taxes in the country are among the highest in the world.
India currently demands customs duty ranging between 60% to 100% on imported cars. India imposes 100% import duty on fully imported cars with CIF (Cost, Insurance and Freight) value over $40,000, while 60% duty is imposed on cars that cost less than the amount.
Its request for tax cuts prompted objections from several local players, who say such a move would deter investment in domestic manufacturing.
Musk had also said that a Tesla 'factory in India is quite likely' but at the condition that its imported cars first succeed in the country.
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