Original title: Import tariffs do not talk closely Tesla shelved its plan to enter the Indian market after "hitting a wall"

Financial Associated Press, May 13 (Editor Niu Zhanlin)According to Reuters on Friday (May 13), three people familiar with the matter said that after failing to obtain lower tariffs on the import of electric vehicles, Tesla has shelved plans to sell electric vehicles in India, abandoned the job of looking for showrooms, and redistributed part of the Indian team.

The decision also means tesla ends more than a year of deadlock negotiations with representatives of the Indian government, which has previously tried to test demand in the Indian market by importing electric cars from U.S. and Chinese production centers with lower tariffs.

Strong demand for Tesla cars elsewhere and a stalemate over import taxes have prompted Tesla to change its strategy, people familiar with the matter said. Tesla's deadline is Feb. 1, when India announces its budget and announces tax changes. When India's Modi government did not offer the offer, Tesla shelved plans to enter India.

Two of the sources said Tesla had been looking for real estate options for months to open showrooms and service centers in major Indian cities such as New Delhi, Mumbai and Bangalore, but that plan has also been shelved.

Disagreements are hard to pin down

India's auto import tariffs are high, with imported electric vehicles under $40,000 being taxed at 60% and rising to 100% if they exceed $40,000. Tesla has asked the Indian government to lower taxes and reduce the import tax rate on electric vehicles to 40%.

The Indian government has asked Tesla to increase its procurement efforts in India and set up a factory in the country. Musk has stated that Tesla may build a factory in India, but the premise is that Tesla can achieve sales success in the Indian market first.

Modi's government has tried to attract global manufacturers with "Made in India," but his transport minister, Nitin Gadkari, said in April that it was not a "good offer" for Tesla to export cars from elsewhere to India.

Despite the stalemate in negotiations with Tesla, the Indian government won a victory in January, with German luxury automaker Mercedes-Benz saying it would begin assembling and producing an electric car in India, becoming the first luxury car manufacturer in the world to assemble an electric car in India.

Tesla is also hoping to gain an early advantage in India, a small but potential-rich electric vehicle market. Currently, the Indian electric vehicle market is dominated by domestic automaker Tata Motors.

Tesla's electric car will have a minimum price of $40,000, which will put it in the luxury car segment of the Indian market. Tesla's share of India's market, which sells about 3 million cars a year, is a small part.