NEW DELHI: The long-pending announcement of Tesla’s entry into the Indian market may take this month as its billionaire CEO Elon Musk will visit India soon to meet Prime Minister Narendra Modi.
“Looking forward to meeting with Prime Minister @NarendraModi in India!,” Musk tweeted on Wednesday. It is said that during or after the meeting, Musk will announce his plans to invest and open a new factory in the country. As per Reuters, Musk will meet PM Modi on April 22 in New Delhi, and will separately announce his India plans. The report cited that Musk’s final India trip agenda could still change.
An announcement by Musk to set up a base in in the country will boost PM Modi’s make-in-India initiative ahead of the crucial general election of 2024. As per industry sources, Tesla could send a team this month to search for locations for a proposed $2-$3 billion electric car plant. The team is said to be in talks with the state governments in Gujarat, Maharashtra, UP and Telangana for the proposed investment.
The electric carmaker has already begun production of right-hand drive cars in its Germany plant to test the Indian market after the government last month slashed import duty on EVs for manufacturers who are willing to invest here.
Musk in a recent conversation with Nicolai Tangen, CEO of Norges Bank Investment Management, confirmed Tesla’s entry into India. “India is now the most populous country in the world. India should have electric cars just like every other country. It’s a natural progression to provide Tesla electric vehicles in India,” he said in a Spaces session on X.
This is not the first time Tesla has shown interest in investing in India. Market experts believe revised norms for imported EVs, what Tesla was lobbying for, make a compelling case for them to start making e-cars in India.
Tesla has reportedly told Indian government officials that it is considering building a smaller car here, which would be priced less than $30,000. It can sell the model here and export to Southeast Asia, the Gulf, Africa, and southern and eastern Europe.
In a bid to attract Tesla and other global automakers to start making EVs in India, the Centre on March 15 made big changes in its EV policy. It has allowed import of completely built-up (CBU) EVs that have a minimum cost, insurance and freight (CIF) value of $35,000 at 15% import duty for a period of 5 years.
Tesla base to boost PM’s Make-in-India initiative
Elon Musk could meet PM Modi on April 22 in New Delhi, and will separately announce his India plans. A report cited Musk’s final India trip agenda could still change. An announcement by Musk to set up a base in India will boost PM Modi’s make-in-India initiative ahead of general elections 2024. As per industry sources, Tesla could send a team this month to search for locations for a proposed $2-$3 bn EV plant