Elon Musk, CEO of Tesla, has confirmed his upcoming visit to India and expressed his anticipation for a meeting with Prime Minister Narendra Modi. Musk shared his excitement about the meeting on social media, stating, “Looking forward to meeting with Prime Minister @NarendraModi in India.”
The anticipated timeframe for Musk’s visit is the week of April 22. It is speculated that during this visit, Musk will unveil Tesla’s investment plans for the Indian market.
This announcement follows Musk’s previous interaction with Modi during the latter’s visit to the United States in June last year. During that meeting, Musk had expressed his intention to visit India in 2024 and had expressed optimism about Tesla’s imminent entry into the Indian automotive sector. Musk’s visit is timely, coinciding with the Indian government’s introduction of a new electric vehicle (EV) policy.
The new policy offers import duty incentives to companies that establish manufacturing plants in India with an investment threshold of USD 500 million. This initiative aims to attract leading global entities like Tesla to establish operations in India.
Under the new policy, companies that establish EV passenger car manufacturing facilities will benefit from the privilege to import a limited quantity of vehicles at a reduced customs/import duty of 15 percent for cars valued at USD 35,000 or more. This concession is valid for five years from the issuance of the government’s approval letter.
Currently, completely built units (CBUs) are subject to import duties ranging from 70 to 100 percent, depending on the engine size and the cost, insurance, and freight (CIF) value.
The objective of the policy is to position India as a premier manufacturing hub for EVs and attract investments from esteemed global manufacturers. Last year, Tesla had requested the Indian government to reduce duties on its vehicle imports.
Musk had previously stated in 2022 that Tesla would not manufacture its products in India unless allowed to sell and service its cars in the country first.
In August 2021, Musk had suggested that Tesla might consider establishing a manufacturing unit in India based on the success of its imported vehicles. He had expressed frustration with India’s import duties, which he described as “the highest in the world by far of any large country,” but remained optimistic about Tesla’s prospects in the Indian market.