Come to India, Tesla is urged by Indian states

Politicians from at least five Indian states took to Twitter to invite Tesla to set up shop in their provinces, just days after billionaire founder Elon Musk said the US electric-vehicle pioneer was still facing a lot of challenges with the national government.

Musk and the Indian government have been in talks for years, but disagreements over a local factory and import duties have led to an impasse, meaning Tesla still doesn’t sell cars in India, three years after showing definite intent. While Prime Minister Narendra Modi’s administration wants Tesla to set up a factory to sell locally and export, Musk has insisted on slashing import duties of as much as 100% so that Tesla can first establish a market.

Setting up car factories in India could be difficult even for local companies without any government support, as red tape, land acquisition and labour rights remain a constant challenge. In 2008, Tata Motors, run by India’s biggest conglomerate, was forced to abandon a near-complete facility in West Bengal after violent protests by farmers against land acquisition, thwarting its attempt to build the Nano, the world’s cheapest car, in the state.

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