Tesla CEO Elon Musk plans to visit India this month to meet Prime Minister Narendra Modi. The discussions are expected to focus on Tesla’s investment in India, including the establishment of a new factory, amidst the country’s evolving electric vehicle policies.
Elon Musk, the CEO of Tesla, is slated to visit India this month for discussions with Prime Minister Narendra Modi, with expectations to unveil plans for significant investments and the establishment of a new Tesla factory in India, according to two individuals familiar with the matter. The meeting between Musk and Modi is scheduled for the week of April 22 in New Delhi, where Musk is also anticipated to announce his investment plans in the country separately. Accompanying Musk will be a team of Tesla executives.
This upcoming visit marks a critical development in Tesla’s engagement with India, as the company has been advocating for reduced import taxes on electric vehicles (EVs) to facilitate the establishment of a production facility within the country. Following Tesla’s lobbying efforts, India recently introduced a new EV policy that significantly reduces import taxes from 100% to 15% on certain models for manufacturers committing to a minimum investment of $500 million and the construction of a local manufacturing plant.
Reported by Reuters indicated that Tesla representatives were expected to assess potential locations for a manufacturing plant in India, a project estimated to require around $2 billion in investment. Additionally, Tesla has initiated the production of right-hand drive vehicles at its German facility, targeting exports to India later this year.
Musk emphasized the importance of electric vehicles for India on the social media platform X, stating, “India should have electric cars like every other country has electric cars. It’s a natural progression to provide Tesla electric vehicles in India.”
Tesla’s move to expand into the Indian market coincides with a slowdown in EV demand in its primary markets, the United States and China, amidst growing competition from Chinese car manufacturers. The company recently reported a decrease in first-quarter deliveries, falling short of analysts’ expectations.
Although the EV market in India remains relatively small, it is on an upward trajectory, largely dominated by local manufacturer Tata Motors. EVs accounted for only 2% of total car sales in 2023, with the Indian government aiming to increase this share to 30% by 2030.
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