The Indian government reportedly may reduce import duties on imported electric vehicles for Tesla and other manufacturers if Tesla builds a gigafactory in India.

Earlier this year, Tesla has obtained two permits for car sales and production in India. Still, Elon Musk is not sure whether the sales situation in India is worth the company building a factory here, so he requested the Indian government to reduce the current 60% tariff on imported cars under $40,000 to 40% in order to adjust the price of vehicles to the appropriate level. The Indian government is currently considering the request.