New Delhi: Tesla CEO Elon Musk is gearing up for a high-profile meeting with India’s Minister of Commerce and Industry, Piyush Goyal, set to take place in the United States next week. This rendezvous follows Musk’s earlier discussion with Prime Minister Narendra Modi, where he expressed a keen interest in substantial investments in India.
The crux of this upcoming meeting is expected to revolve around Tesla’s ambitious plans to establish a manufacturing facility in India. The company’s vision includes the production of an affordable $24,000 electric car and increasing the use of locally sourced components. Furthermore, Tesla aims to roll out a comprehensive charging infrastructure nationwide.
Additionally, the discussions touch upon India’s forthcoming policy, which could significantly reduce import taxes on fully assembled electric vehicles, dropping from a steep 100% to a mere 15%. It’s worth noting that this policy is still a work in progress. In the past, Tesla had shelved its plans to enter the Indian market due to inconclusive talks with the government on import duties. The Indian government had emphasized the importance of local manufacturing, offering potential incentives in return. They had also encouraged Tesla to explore the production-linked incentive scheme.
As per the report, this eagerly anticipated meeting is poised to steer the discussions in the right direction, furthering the prospects of Tesla’s presence in the Indian market.
Furthermore, there has been a recent push by Prime Minister Modi’s office to accelerate the new electric vehicle (EV) policy. The government is carefully evaluating the potential impact of this policy on the burgeoning EV market in India. Local manufacturers have voiced concerns about the possibility of reduced EV import taxes disrupting the market and hampering their plans.
While the meeting primarily focused on overarching policy matters, a key highlight was the agenda to expedite approvals for Tesla’s proposed investments in India, aiming for a tangible progress milestone by January 2024.
In an exciting development, it has been revealed that Tesla is considering launching its initial phase in India with direct imports from its German Gigafactory, a strategic move prompted by Indian officials’ reservations about importing from the Shanghai Gigafactory in China.