No tax waiver for Tesla, says official as Elon Musk-led company mulls manufacture of 500,000 EVs in India

Indian authorities have dismissed claims that it is considering  duty waiver for Elon Musk-led Tesla. The announcement came amid reports that Tesla was discussing an investment proposal to make about half a million electric vehicles annually at a local factory. While India remains keen for Tesla to manufacture vehicles within the country, the company had previously said it wanted to begin with exports in order to test the strength of demand.

“Any duty waiver for Tesla is not under active consideration of the Department of Revenue, as of now,” Revenue Secretary Sanjay Malhotra told Reuters on Thursday.

The US automaker's India entry plans had stalled last year as the government refused to lower import taxes on its cars. India levies as much as 100% import tax on electric vehicles. In May this year the company had held fresh discussions with officials about incentives being offered by the government for its cars and battery manufacturing. 

ALSO READ: Elon Musk's Tesla looks to set up India factory to support electric cars: Report

Last month, Musk said Indian Prime Minister Narendra Modi was pushing the car maker to make a "significant investment" in the country. He had added that such an announcement was expected soon.

(With inputs from agencies)