India is not considering tax incentives for Tesla Inc., Revenue Secretary Sanjay Malhotra said. This comes less than a month after the electric car giant’s CEO, Elon Musk, told Prime Minister Narendra Modi that it is considering a “significant investment” in the country.
“Any duty waiver for Tesla is not under active consideration of the Department of Revenue as of now,” Malhotra told Reuters in an interview.
Musk had said India has strong potential for sustainable energy, including solar power, stationary battery packs, and electric vehicles.
Tesla has already registered its business under the name Tesla India Motors and Energy Pvt. and has also been testing its vehicles in the country. But it wants the government to reduce import taxes on electric vehicles and components.
Officials have previously said that the EV maker should first start production in India before tax benefits can be considered.