Elon Musk, CEO of Tesla and Space X, is scheduled to visit India for a meeting with Indian Prime Minister Narendra Modi. The meeting, slated to occur in New Delhi during the week of April 22, is anticipated to include announcements regarding Tesla’s investment plans and the establishment of a factory in India.
According to sources Musk expressed his anticipation for the meeting on the social media platform X. This visit holds particular significance as India is gearing up for a two-month-long election starting April 19, potentially securing Modi a rare third term. A Tesla investment announcement during this period could bolster Modi’s reputation as a business-friendly leader. Modi’s administration has consistently promoted India as an attractive destination for foreign companies, encouraging them to establish manufacturing operations and create job opportunities in the country.
Musk is expected to be accompanied by other Tesla executives during his visit to India. The last interaction between Musk and Modi occurred in New York in June. Tesla has been advocating with the Indian government for months to reduce import taxes on electric vehicles, while also considering setting up a factory in the country. India recently introduced a new EV policy, slashing import taxes to 15% from the previous 100% for select models, contingent on the manufacturer investing a minimum of $500 million and establishing a factory.
Previous reports indicated that Tesla officials were set to visit India this month to scout locations for a manufacturing plant, necessitating an investment of around $2 billion. Additionally, Tesla has commenced producing right-hand drive vehicles at its German facility, targeting exports to India later this year. Musk stressed the importance of providing Tesla electric vehicles in India, stating that it is a natural progression for the country to adopt electric cars. Tesla’s expansion into the Indian market comes at a time when demand for electric vehicles is waning in its primary markets, the US and China, due to heightened competition from Chinese automakers.
Tesla recently reported a decrease in first-quarter deliveries, falling short of analyst expectations. Although India’s electric vehicle market is currently modest, it is on an upward trajectory, primarily led by local automaker Tata Motors. Electric vehicles accounted for 2% of total car sales in 2023, with the government aiming to increase this share to 30% by 2030.
