According to the sources, Tesla Inc. would need to commit to sourcing at least $500 million of auto components from India for the electric carmaker’s request for an import tax cut on its vehicles to be considered. The government has said it is keen for the EV pioneer to make cars in the country, but it appears to be using their interest to try and gain benefits for the nascent local electric car industry. Meanwhile, Tesla says it wants to test the waters by selling imported cars first and to make that viable as high as 100% would need to be lowered. India is still a value-conscious auto market dominated by cheaper gasoline cars and clean transport remains a fledgling industry, with electric cars just 1% of cars sold annually. In order to progress on its tax-cut bid, Tesla must approach the government with a component-sourcing plan that’s proportional to its car sales forecast in India. India has rejected Tesla’s call for lower taxes to import electric vehicles, saying existing rules already allow partially-built vehicles to be brought in and then assembled locally at a cheaper levy. Imported EVs attract taxes of as much as 100%, while there are import duties of between 15% to 30% on parts shipped for assembly in the nation.Tesla still is facing an impasse with the federal government, other Indian states are courting the carmaker, promising a streamlined approval process. At least five states have pitched for Tesla to set up manufacturing plants in their provinces.