Tesla CEO Elon Musk said on Thursday that the electric vehicle maker is facing "a lot of challenges" in launching its vehicle in India.
"Continues to work on many challenges with the government," Musk tweeted.
Musk was replying to a Twitter user, who asked, "Yo @elonmusk, any furher updates on when Tesla will launch in India? They're pretty awesome and deserves to be in every corner of the world!"
Tesla wants to begin selling imported cars in India this year, but says the country's taxes are among the highest in the world.
With a global price of USD 39,990, the Tesla Model 3 may still be an affordable model in the US, but with import duties, it would become unaffordable in the Indian market with an expected price of around Rs 60 lakh.
India currently levies 100% duty on imported cars over $40,000 (Rs 30 lakh), inclusive of insurance and shipping expenses, and cars under $40,000 are subject to 60% import duty.
The government may consider lowering import tariffs along with offering other support programs to Tesla, but for that, the leading electric vehicle company will have to invest in setting up a manufacturing plant in the country.
Earlier, Union Road Transport and Highways Minister Nitin Gadkari reported that a Tesla car would cost around Rs 35 lakh in India.