Share the QR code < / P > < p > with wechat scanning code to friends and circles of friends < / P > < p > on January 20, a number of people familiar with the matter disclosed that the negotiation between India and Tesla, an American electric vehicle manufacturer, on potential tax incentives is at an impasse, because India is unwilling to give any concessions to Tesla when Tesla does not promise to build a factory to manufacture cars locally < p > Tesla is eager to ship and sell its electric vehicles to India and has been lobbying the country to reduce tariffs for nearly a year. Elon Musk, CEO of Tesla, even complained that India has one of the highest tariffs in the world < p > however, several Indian government sources said that they did not believe Tesla's lobbying because the company had not shared any clear plans to invest in India, which was inconsistent with the "made in India" vision of Indian Prime Minister Narendra modi to promote local manufacturing and create jobs < p > according to people familiar with Tesla's ideas, the company's negotiations with the Indian government have fallen into a "strange impasse". "The situation has not made much progress for Tesla," the person said < p > the impasse in the negotiations may disrupt Tesla's ambition to enter the Indian market, as the company will place its hopes on India to reduce import tariffs to make its cars cheaper and quickly open the market < p > at present, India imposes an import tax of up to 100% on electric vehicles with the so-called "CIF Cost" (i.e. vehicle price plus inbound freight) of US $40000 or higher. For Tesla, this will make India the most expensive market for its cars, and most Indian consumers cannot afford to buy them < p > people familiar with the matter said that Tesla has told Indian officials that the company is willing to purchase more auto parts locally and finally realize local manufacturing. But the Indian government wants Tesla to make a clear commitment < p > a senior Indian government official said: "if Tesla doesn't want to invest here, how can this model work?" He added that it was "highly unlikely" to reduce import tariffs in the short term < p > Tesla did not respond to a request for comment. Modi's office and India's ministries of Finance and industry are reviewing Tesla's request, and they also did not comment < p > however, people familiar with the matter said that Tesla placed its hopes on the upcoming Indian federal budget on February 1, because the changes in tariffs are usually announced on the same day. The company will take the opportunity to see if its lobbying has worked, and then reconsider its strategy on how to enter the Indian market < p > people familiar with the matter also said that in the latest efforts, Tesla representatives recently met with officials of Indian tax and customs authorities. Previously, they also met with modi's office staff and sought to arrange for musk to meet with the prime minister to discuss his India plan < p > the modi government has always taken a tough attitude towards the requirements of foreign companies because it focuses on improving local production. In 2017, apple sought tax incentives, including reducing import tariffs and producing iPhones locally, but many of its requests were rejected by Indian officials < p > musk previously said on twitter that if Tesla can successfully sell imported cars in India, it may consider making them locally in India. He wrote on twitter last week that the company "is still working with the government to meet many challenges". (small) < / P > < p >