Tesla and X (formerly Twitter) Boss Elon Musk has confirmed his visit to India, and most importantly, his meeting with Prime Minister Narendra Modi.
While the exact date and quantum of discussion between Musk and Prime Minister Narendra Modi has not been officially announced, it is mostly expected that the meeting among other things will primarily focus on Tesla’s investment plans for India.
The electric vehicle brand has been long mulling to enter the world’s third-largest passenger vehicle market, but has not made any concrete commitments. In fact, Musk had in the past expressed concerns around high-taxation on CBU (completely built units) vehicles, the government of India had maintained a stand on the need for setting up local production.
It was just recently that the government of India announced a new EV policy that aims to promote local manufacturing. The eligibility would require the EV makers to invest a minimum of $500 million (Rs 4,150 crore) in the country and reach 50% localisation in 5-years.
Tesla on its part has been under pressure due to the slowing down of sales in the global market, increasing competition from Chinese EV makers, and also from investors on its financial performance.
Industry observers have been long expecting Tesla to establish a presence in India, which would while not bring high volumes immediately, but mark its commitment to the world’s third largest market.
This would not only help it de-risk competition from Chinese automakers, but also leverage India as a potential export base for other markets.
