Elon Musk, the CEO of Tesla, announced on Tuesday that the company is actively working towards investing in India at the earliest possible opportunity. Musk’s statement came after a meeting with Indian Prime Minister Narendra Modi in New York, where discussions centered around Tesla’s plans for the Indian market.
Expressing his admiration for Modi’s dedication to India’s growth, Musk shared that the Prime Minister has been urging Tesla to make significant investments in the country. While Musk did not provide a specific timeline, he affirmed his confidence in Tesla’s future presence in India, emphasizing their commitment to entering the market as soon as humanly possible. He also mentioned tentative plans to personally visit India in the coming year.
Tesla’s interest in the Indian market has been evident for several years. As early as 2017, Musk had expressed intentions to sell cars in India, but progress has been hindered by negotiations with the Indian government regarding import duties. Musk previously highlighted the high import duties in India as a significant hurdle, and Tesla has been actively seeking to lower these taxes. The Indian government has indicated a preference for Tesla to manufacture vehicles locally before considering any tax concessions.
Following the meeting with Modi, Musk expressed his enthusiasm for India’s future and commended the Prime Minister’s supportive stance towards companies. He emphasized Modi’s desire to benefit both India and the companies operating within the country.
Tesla currently operates a gigafactory in Shanghai, which is its largest manufacturing plant outside of the United States. The factory has played a crucial role in Tesla’s global deliveries, accounting for over half of their total in 2022. Musk recently stated that Tesla aims to select a location for a new factory by the end of the year, with India being an appealing option.
China and India have been actively seeking to attract investments in the electric vehicle (EV) industry. China recently announced an extension of tax breaks for consumers purchasing new energy vehicles (NEVs), which include battery electric cars and plug-in hybrids. This move aims to boost sales and production in the world’s largest EV market. Musk’s visit to China in May further reinforced Tesla’s commitment to EV development and operations in the country.
Overall, Elon Musk’s meeting with Prime Minister Narendra Modi and his subsequent statements reflect Tesla’s determination to establish a strong presence in India, with plans to invest and contribute to the country’s growth and development.