Tesla chief Elon Musk is scheduled to visit India this month and meet with Prime Minister Narendra Modi to discuss investment plans and potentially announce the opening of a new factory in the country, according to two undisclosed sources.
The anticipated meeting between Musk and Modi is set to take place in New Delhi during the week of April 22. The sources mentioned that Musk will be accompanied by other Tesla executives for the visit.
While neither Modi’s office nor Tesla has provided official comments on the news, Reuters was the first to report on the details of Musk’s upcoming visit to India. It is noted that there is still a possibility of changes to Musk’s finalized agenda for the trip.
Earlier in June, Musk and Modi had a meeting in New York where Tesla had been campaigning for a reduction in import duties on electric vehicles in India, as the company considered setting up a manufacturing facility in the country. In response, India recently introduced a new EV policy which includes a significant reduction in import taxes for manufacturers investing over $500 million and establishing local production.
Reports suggest that Tesla officials are likely to inspect potential sites for a manufacturing plant in India this month, with an estimated investment of around $2 billion for the project. In parallel, Tesla has initiated right-hand drive car production in its German plant to cater to the Indian market later this year.
In a recent statement, Musk expressed his belief that India should embrace electric vehicles like many other nations have done, underscoring the importance of introducing Tesla’s EVs in the Indian market.
The move by Tesla to expand into India comes amidst a decline in demand for EVs in its primary markets – the U.S. and China – coupled with escalating competition from Chinese automakers. Tesla’s first-quarter delivery figures fell below analyst forecasts.
Although India’s electric vehicle market remains relatively small, it is steadily growing and is predominantly led by local manufacturer Tata Motors. EV sales accounted for just 2% of total car sales in India in 2023, but the government has set a target of achieving a 30% share by 2030.
