Tesla pauses entry plan into India

Tesla has put on hold plans to sell electric cars in India, abandoned a search for show room space and reassigned some of its domestic team after failing to secure lower import taxes, three people familiar with the matter told Reuters.The decision caps more than a year of deadlocked talks with government representatives as Tesla sought to first test demand by selling electric vehicles (EVS) imported from production hubs in the United States and China, at lower tariffs.But the government is pushing Tesla to commit to manufacturing locally before it will lower tariffs, which can run as high as 100 per cent on imported vehicles.

The electric vehicle manufacturer had set itself a deadline of February 1, the day India unveils its budget and announces tax changes, to see if its lobbying brought a result, sources said.When the government did not offer a concession, Tesla put on hold the plans to import cars into India, added the sources.Tesla did not respond to an email seeking comment.A government spokesman did not immediately respond to a request for comment.