Tesla Chief Executive Elon Musk will visit India this month to meet Prime Minister Narendra Modi and is expected to announce plans to invest and open a new factory in the country, two people with direct knowledge of the matter said.
The billionaire will meet Prime Minister Narendra Modi in New Delhi the week of April 22 and will separately announce his plans for India, two sources said. The two sources declined to be named because details of the visit are confidential.
The Tesla CEO will be accompanied by other executives during the visit, the first source said.
Reuters first reported details of Musk’s planned visit to India. Prime Minister Modi’s office and Tesla did not respond to requests for comment. The agenda of Musk’s final trip to India could still change.
Musk and Prime Minister Modi last met in New York in June, and Tesla has been lobbying India for months to lower import taxes on electric vehicles while also weighing a factory in India. India announced a new electric vehicle policy last month that will reduce import duties on certain models from 100% to 15% if manufacturers invest at least $500 million (approximately Rs. 4,168 crore) and set up factories.
Reuters has previously reported that Tesla officials are expected to visit India this month to select a site for a manufacturing plant that will require an investment of about US$2 billion (approximately 16,674 crore rupees).
Tesla’s German factory has also started producing right-hand-drive vehicles, which will be exported to India later this year, sources said.
“India should have electric cars like other countries. Offering Tesla electric cars in India is a natural progression,” Musk said on X this week.
Tesla’s foray into India comes as demand for electric vehicles slows in its main U.S. and Chinese markets and competition from Chinese automakers intensifies. Tesla reported a drop in first-quarter deliveries, below analysts’ expectations.
India’s electric vehicle market is small but growing and is dominated by local carmaker Tata Motors. By 2023, electric vehicles will account for only 2% of total vehicle sales. The government’s goal is to reach 30% by 2030.
© Thomson Reuters 2024
