Elon Musk, the CEO of Tesla, is set to visit India later this month for a significant meeting with Prime Minister Narendra Modi. According to two reliable sources, Musk’s visit is expected to include an announcement regarding Tesla’s investment plans and the establishment of a new factory in the country.
The meeting between Musk and Modi is scheduled to take place during the week of April 22 in New Delhi. The sources, who preferred to remain anonymous due to the confidentiality of the trip, disclosed that Musk will unveil his plans for India during his visit. Musk will be accompanied by other key executives from Tesla, according to the first source.
This exclusive information regarding Musk’s impending visit to India was first reported by Reuters. However, neither Modi’s office nor Tesla has responded to requests for comments on the matter. It’s worth noting that the final agenda for Musk’s visit to India could still undergo changes.
Musk and Modi’s last meeting took place in New York in June, where Tesla had been advocating for India to reduce import taxes on electric vehicles while contemplating establishing a manufacturing presence in the country. India recently announced a new EV policy that reduces import taxes to 15% from 100% on certain models, provided the manufacturer invests at least $500 million and establishes a factory.
Earlier reports from Reuters suggested that Tesla officials would visit India this month to scout potential locations for a manufacturing plant, with an estimated investment of approximately $2 billion. Furthermore, sources have revealed that Tesla has initiated the production of right-hand drive cars at its German plant, intended for export to India later this year.
Musk, emphasizing the importance of electric vehicles in India, stated this week that “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 expansion into the Indian market comes at a time when demand for electric vehicles is slowing in its primary markets of the United States and China, coinciding with increased competition from Chinese automakers. In the first quarter of this year, Tesla reported a decline in deliveries, falling short of analyst estimates.
Although India’s electric vehicle market is relatively small, it is experiencing steady growth and is currently dominated by local carmaker Tata Motors. Electric vehicles accounted for just 2% of total car sales in 2023, but the government aims to increase this to 30% by 2030, signaling significant potential for growth in the sector.
