Tesla urges Narendra Modi to cut taxes before it enters Indian market

Tesla Inc has urged Indian Prime Minister Narendra Modi’s office to reduce import taxes on electric vehicles before it enters the market, according to Reuters.

The American automaker wants to start selling imported cars in India this year but says taxes in the country are one of the highest in the world. Its request for tax cuts prompted objections from several regional players, who say such a move would deter investment in regional manufacturing.

Tesla executives including Manuj Khurana, it’s head of policy in India, took the company’s demands to Modi’s officials in September this year in a closed-door meeting, arguing that the taxes were too high.

During the meeting at Modi’s office, the automaker said that India’s duty structure would not make its business in the country a “viable proposition”.

India levies an import duty of 60% on electric vehicles that cost $40,000 or below, and 100% duty on those priced more than $40,000.

The automaker has separately also put in a request for a meeting between its CEO Elon Musk and Modi.

Tesla and Modi’s office are yet to comment on the report.