Elon Musk has confirmed via his social media platform X, previously known as Twitter, that he will be visiting India to meet with Prime Minister Narendra Modi in the near future. The Tesla CEO is anticipated to unveil substantial investment plans for the country. In response to India’s recent reduction in import taxes on electric vehicles (EV), global carmakers committing to investing $500 million and commencing local production within three years are encouraged. This move aims to boost the local production of environmentally friendly vehicles in India.
The meeting between Musk and Modi is scheduled to take place in the last week of April at the Prime Minister’s official residence in New Delhi. Discussions are expected to revolve around Tesla’s intentions to establish manufacturing operations in India. With Tesla facing challenges in major markets like the US and China, expanding into India potentially presents a new growth opportunity for the company. Musk’s visit coincides with the commencement of wide-ranging elections in India, where the ruling Bharatiya Janata Party (BJP) led by Modi is anticipated to secure a third term in power.
Should Tesla choose to announce a significant investment during the election period, it would affirm Modi’s reputation as a leader who is keen on attracting foreign investments and creating job opportunities in India. This potential association with Tesla could enhance the business-friendly image of Modi’s administration. The upcoming meeting between Musk and Modi follows their previous encounter in New York in June, where plans for substantial investments in India were initially discussed. As Tesla endeavors to navigate challenging market conditions, such as declining sales and increased competition, the decision to enter the Indian market could prove pivotal for the company’s future growth and sustainability.