Tesla urges Indian government to reduce taxes

- Closed meeting of Tesla officials with PMO officials

- The tax structure in India is complex and the tax rates are very high: Tesla

New Delhi: Tesla has urged Prime Minister Narendra Modi to reduce taxes on electric vehicles before he enters the Indian market. However, some Indian auto companies may object to his demand.

Tesla wants to sell its cars in India this year, but it wants a reduction in taxes. Taxes imposed in India have the highest rates in the world. Earlier, Tesla had called for a tax cut in July, but some local companies said it would slow down investment in the domestic manufacturing sector.

Tesla executive Manuj Khurana, including the head of policy in India, took the company's demand to Modi's officials last month. He also said that the tax rates were high, said four people with knowledge of the matter.

During a meeting at Modi's office, Tesla said India's tax structure makes it difficult for a foreign company to do business in the country. India levies a 50 per cent import duty on electric vehicles worth લર 50,000 or less. Electric vehicles valued at more than 50,000 are taxed at 100 percent. Analysts say this rate makes Tesla cars extremely expensive for buyers. This may limit its sales. Tesla also said this during a meeting between Musk and Modi.