Billionaire entrepreneur Elon Musk has confirmed his upcoming visit to India, where he will be meeting with Prime Minister Narendra Modi. This announcement comes amidst widespread anticipation regarding Tesla’s potential establishment of a manufacturing facility in the country.
Musk, utilizing the X platform, expressed his anticipation for the meeting with PM Modi, signaling a significant step in Tesla’s potential ventures in India. According to reports from Reuters, the meeting is scheduled to take place during the week of April 22 in New Delhi, highlighting the importance of this interaction.
This encounter marks a continuation of discussions between Musk and PM Modi, with their last meeting occurring in New York back in June. Since then, Tesla has been actively engaging with Indian authorities, advocating for reductions in import taxes on electric vehicles. The prospect of establishing a factory in India has been under consideration by Tesla for some time.
Elon Musk will visit India this month to meet PM Narendra Modi and is expected to make an announcement on his plans to invest and open a new factory in India. pic.twitter.com/BE6UIetBkK
— Raghu (@IndiaTales7) April 10, 2024
Tesla’s Potential Entry into the Indian Market
Tesla’s interest in the Indian market predates Musk’s upcoming visit, with the company pursuing discussions with the government regarding import duty concessions. Last year, Tesla approached Indian authorities seeking duty cuts to facilitate the importation of its vehicles into the country.
Elon Musk’s stance on manufacturing in India has evolved over time. In 2022, he asserted that Tesla would only consider manufacturing its products if granted permission to sell and service its cars within India. Prior to that, in 2021, Musk expressed willingness to establish a manufacturing unit in India contingent upon the success of imported vehicle sales. However, he cited prohibitive import duties as a significant obstacle, labeling them as the highest among large countries worldwide.
As India unveils its new electric vehicle policy, offering import duty concessions to companies investing at least USD 500 million in manufacturing units, the stage seems set for Tesla’s potential entry into the Indian market. Musk’s upcoming meeting with PM Modi holds the promise of furthering these discussions and potentially paving the way for Tesla’s expansion into India.
