Elon Musk To Meet PM Modi In April, Disclose Investment Plans
SUMMARY
The billionaire will likely make an announcement about his plans to invest and set up a new manufacturing facility in India during his meeting with PM Modi in the week of April 22.
The development comes amid reports that Tesla is in talks with Reliance Industries for a potential joint venture to set up a manufacturing facility in India.
Musk’s planned India visit comes at a time when India has slashed import taxes on certain electric vehicles to as low as 15% for automakers pledging to invest at least $500 Mn and initiate domestic manufacturing within 3 years.
Tesla CEO Elon Musk is reportedly coming to India later this month to meet Prime Minister Narendra Modi and is likely to make an announcement about his plans to invest and set up a new manufacturing facility in the country.
As per Reuter’s report, citing sources close to the matter, Musk will meet Modi in the week of April 22 in New Delhi.
This comes amid reports that Tesla is in talks with Reliance Industries for a potential joint venture to set up a manufacturing facility in India.
It’s noteworthy that Tesla has already begun the production of right-hand drive EVs at its manufacturing facility in Germany as it doubles down on its plans to enter the Indian market.
Moreover, a team of Tesla officials is expected to visit India later this month to scout locations for its inaugural manufacturing facility.
Musk recently said that India, like every other nation, should have electric cars, adding that it will be a “natural progression” for his company to enter the Indian EV market.
Musk’s India visit comes at a time when the country has slashed import taxes on certain electric vehicles to as low as 15% for automakers pledging to invest at least $500 Mn and initiate domestic manufacturing within 3 years.
Under the current regulations, India imposes a 70% or even 100% tax on imported EVs, depending on the price.
Tesla’s push to sell its cars in India comes in the face of dwindling EV demand in its primary markets — the US and China.
While Tesla is facing fierce competition from domestic original equipment manufacturers (OEMs) in China, quality and manufacturing concerns in the US are hurting the electric car maker’s reputation and market share.
As per a Reuter’s report, Tesla plans to begin production of a “mass market” EV by the second-half of 2025. As part of the plan, it will roll out a slew of cheaper EVs that will allow it to compete with gasoline-powered and hybrid vehicles.
