Tax woes: Tesla gets an offer, but with a caveat on local manufacturing

Tesla models, with price starting at around Rs 34 lakh in the US, will cost double in India

Just days after Elon Musk tweeted that his company was “working through a lot of challenges” with the Indian government, officials suggested that the Centre wants a firm commitment from Tesla on local manufacturing of electrical vehicles in line with its Make in India vision. Along with that, it wants an investment plan of the company ahead of any discussion on tax sops. According to reports, the Centre has expressed reservation over the company’s view that it could begin with local sourcing of components before shifting to manufacturing in India.

Having made its point that India's tariffs are among the