Tesla in talks to enter India via single-brand retail: report

Electric car maker Tesla has reportedly initiated talks with the government to enter India via the single-brand retail route - which comes with several conditions, including mandatory local sourcing of up to 30 per cent 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, according to The Times of India which cited unnamed sources.

The development comes months after Tesla founder and chief executive Elon Musk had tweeted about the country's 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 15 June.

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 plans to provide after-sales service in India and develop infrastructure to charge the vehicles. A questionnaire emailed to Tesla by ToI on Tuesday evening remained unanswered.