Tesla’s Musk to meet Modi in India and announce investment plans: Reuters

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107260007 1687350347256 gettyimages 1258890718 AA 21062023 1243699

Indian Prime Minister Narendra Modi met with Tesla chief Elon Musk in New York, United States on June 20, 2023. Musk is scheduled to visit India this month to meet with Modi and is anticipated to announce plans to invest and establish a new factory in the country, according to sources familiar with the matter.

The billionaire will have a meeting with Modi in New Delhi during the week of April 22, and will also make a separate announcement regarding his plans for India, though the exact details of the trip remain confidential. Musk will be accompanied by other executives from Tesla during his visit.

Reuters was the first to report on Musk’s planned visit to India. Both Modi’s office and Tesla have not yet responded to requests for comment, and there is a possibility that Musk’s final agenda for the trip could change.

Musk and Modi previously met in June in New York, where Tesla had been lobbying for lower import taxes on electric vehicles in India. The country recently unveiled a new EV policy that reduces import taxes to 15% on certain models if manufacturers invest at least $500 million and set up a factory there.

Sources have reported that Tesla officials are expected to visit India to explore potential locations for a manufacturing plant that would require an investment of around $2 billion. Tesla has started producing right-hand drive cars at its German plant for export to India later this year.

Musk has expressed his belief that India should have electric cars like other countries and sees it as a natural progression to provide Tesla vehicles in the country. The move to enter the Indian market comes as demand for EVs in the US and China slows, and as competition in those markets increases.

India’s EV market is still small but growing, with Tata Motors being a dominant player. EVs accounted for only 2% of total car sales in 2023, but the government aims to increase that to 30% by 2030.

Tesla chief Elon Musk is planning to visit India this month to meet with Prime Minister Narendra Modi and announce plans to invest and open a new factory in the country. This meeting follows their last meeting in New York in June, where Tesla lobbied for lower import taxes on electric vehicles. India recently announced a new EV policy lowering import taxes to 15% from 100%, encouraging manufacturers to invest at least $500 million and set up a factory in the country. Tesla officials are expected to visit India to look at potential manufacturing plant sites that would require an investment of around $2 billion. Additionally, Tesla has started producing right-hand drive cars at its German plant for export to India later this year. Musk has expressed his belief that India should have electric cars like other countries and sees it as a natural progression to provide Tesla vehicles in India. This move comes as Tesla faces slowing demand in its U.S. and Chinese markets and increasing competition from Chinese automakers. India’s EV market is still small but growing, with EVs making up only 2% of total car sales in 2023, but the government aims to increase this to 30% by 2030.

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