Musk-Modi Meet In April; Tesla CEO Expected To Announce India Investment Plans: Report

Musk-Modi Meet In April: Tesla CEO Elon Musk is scheduled to visit India later this month for a significant meeting with Prime Minister Narendra Modi. Citing two sources, news agency Reuters said that Musk intends to unveil plans regarding investments and the establishment of a new factory in the country during his visit.

Musk is slated to meet with Prime Minister Modi during the week of April 22 in New Delhi. He is also expected to make a separate public announcement concerning Tesla's ambitions in India. As per one of sources, Musk will be accompanied by other top executives from the company. Reuters stated that neither PMO nor Tesla has responded to requests for comments on the matter. It's worth noting that Musk's final agenda for the trip could potentially undergo alterations.

Musk-Modi Meet

The upcoming meeting between Musk and Modi follows their last encounter in New York in June. Over the past few months, Tesla has been actively engaging with Indian authorities, advocating for a reduction in import taxes on electric vehicles as part of its considerations for establishing a manufacturing facility in the country. India recently unveiled a new EV policy, slashing import taxes from 100 per cent to 15 per cent on select models if the manufacturer invests a minimum of $500 million and sets up a local factory.

Previous reports from Reuters indicated that Tesla officials would inspect potential sites for a manufacturing plant during their visit to India this month. The estimated investment for such a facility stands at around $2 billion. Additionally, sources have revealed that Tesla has commenced production of right-hand drive vehicles at its German plant, targeting export to India later this year.

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In a recent statement, Musk mentioned the importance of introducing electric cars to India, 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."

EV demand

Tesla's expansion into the Indian market coincides with slowing demand for EVs in its primary markets of the US and China, coupled with heightened competition from Chinese automakers. The company reported a decrease in first-quarter deliveries, falling short of analyst expectations.

Although India's EV market remains relatively small, it is steadily growing, with Tata Motors currently dominating the sector. EVs accounted for merely 2 per cent of total car sales in 2023, but the government aims to escalate this figure to 30 per cent by 2030.