Tesla talks with government for India drive

 Elon Musk-founded Tesla, which makes electric cars, has initiated talks with the government to enter India through the single-brand retail route, which comes with several riders including mandatory sourcing of up to 30% of the value of goods sold in the country.

The company has written to the government evincing interest in entering the market through the single-brand retail window, sources told TOI. The development comes months after Musk had tweeted about the high import duty and sourcing requirements.

"In discussions with the government of India requesting temporary relief on import penalties/restrictions until a local factory is built," he had tweeted on June 15.

Sources said granting an exemption may not be easy and in any case with duty in excess of 100% the import route did not make sense. The government is expected to formally reply to Tesla over the next few weeks, considering there is interest not just from buyers but even at the level of Prime Minister Narendra Modi, who had visited the company's headquarters in 2015 in what was seen as an attempt to get the company to India.

There is no clarity on how Tesla planned to provide after-sales service in India and develop infrastructure to charge the vehicles. A questionnaire e-mailed to Tesla on Tuesday evening remained unanswered.