Tesla Motors is well on its way to India

Electric Carmaker Tesla is in talks with the Indian Government to get tax exemptions from import duties until a factory is built. The company's CEO and founder Elon Musk sent out a tweet confirming the same.

In discussions with the government of India requesting temporary relief on import penalties/restrictions until a local factory is built

— Elon Musk (@elonmusk) June 14, 2017

"For Tesla to launch at a competitive price in India, the company will need to bring its prices down. One way of doing that is by finding ways to reduce the import duty on cars," said Musk.

The reason why these negotiations are important for Tesla is to bring down its prices to a competitive level in India. And exemption from import duty is the easiest way to do that. Currently, international automobile brands need to pay 100 to 120 percent tax to the government so automatically the cost of the vehicle goes up.

Interestingly, Musk talks about eventually setting up one of Tesla’s massive Gigafactories in the country. His tweet clearly says that the negotiations are being done only till Tesla sets up a factory in India. And this could well be true because the chief executive has already set his plans to build close to ten or twenty Gigafactories in the coming years — to lead the electric revolution.

In February 2017, Tesla Motors had announced to launch their electric cars in India in summer 2017. Tesla had even started taking pre-orders from customers for their Model 3 sedan in April 2016.

The price of Tesla's Model 3 is around is $35000 but the final production model is yet to be unveiled.The price of Model 3 in India is not known yet.