Indian Prime Minister Narendra Modi (right) meets Elon Musk (left) in New York, the United States, on June 20, 2023.
Press Information Bureau of India | Anadolu Agency | Getty Images
Tesla Chief Executive Musk will visit India this month to meet with Prime Minister Narendra Modi and is expected to announce plans to invest and open new factories in the country, two people with direct knowledge of the matter said.
The billionaire will meet 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 senior executives during the visit, the first source said.
Reuters first reported details of Musk’s planned visit to India. 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 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 the country. 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 and set up factories.
Reuters previously reported that Tesla officials were expected to visit India this month to select a site for a manufacturing plant that would require an investment of about $2 billion.
Tesla’s German factory has also started producing right-hand-drive vehicles, which will be exported to India later this year, sources said.
Musk said on X this week that “India should have electric vehicles like other countries. Offering Tesla electric vehicles in India is a natural progression.”
Tesla’s move into India comes as demand for electric vehicles slows in its key 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 target is to reach 30% by 2030.
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