INSUBCONTINENT EXCLUSIVE:
While lower duties would give Tesla a better chance to test the marketTesla Inc has written to Indian ministries seeking a big reduction in
import duties on electric vehicles (EVs), a move it says will boost demand and generate revenue for the government, two sources with
knowledge of the matter said.Its pitch, however, is likely to face resistance from Prime Minister Narendra Modi's administration which has
championed high import taxes for many industries in a bid to boost local manufacturing.Other luxury automakers in India have also lobbied
the government in the past to lower taxes on imported cars but have had little success due to opposition from rivals with domestic
operations.Tesla, which aims to begin sales in India this year, said in a letter to ministries and the country's leading think-tank Niti
manufacture locally if demand picks up," one of the sources said
The sources declined to be identified as the letter has not been made public.According to Tesla's United States website, only one model -
the Model 3 Standard Range Plus - is priced below $40,000.Tesla and Niti Aayog did not respond to an email seeking comment
Ministries that Tesla wrote to included the transport and heavy industries ministries, which did not immediately respond to a request for
comment.The market for premium EVs, indeed for electric cars in general, is still very much in its infancy with vehicles far too costly for
the average consumer and very little charging infrastructure in place.Just 5,000 of the 2.4 million cars sold in India last year were
electric and most were priced below $28,000.Daimler's Mercedes Benz began selling its EQC luxury EV in India last year for $136,000, and
Audi launched three electric SUVs this week with sticker tags that begin at around $133,000.While lower duties would give Tesla a better
chance to test the market, its plan to begin sales in India does not hinge on a change in government policy, both sources said.Tesla
registered a local company in India in January and has ramped up local hiring while also scouting for showroom space.Transport minister
Nitin Gadkari told Reuters in March that India would be willing to offer incentives to ensure Tesla's cost of production in the country is
less than that in China, but only if it manufactures locally.
