[Elon Musk]: Meeting With Indian PM Sparks Speculation

Tesla’s head, Elon Musk, plans to visit India shortly, where he is slated to meet Prime Minister Narendra Modi. Sources suggest Musk will possibly unveil the company’s strategic plans for investment in India. Accompanied by other high-ranking Tesla officials, his visit is anticipated around the week of April 22.

Despite an email inquiry sent to Tesla regarding Musk’s visit, there was no response. During Modi’s US trip last year, Musk had a meeting with him and mentioned his intention to visit India in 2024. He expressed assurance about Tesla’s future penetration into the Indian market.

Musk’s imminent visit aligns with the Indian government’s recent announcement of an electric vehicle policy. This policy offers import duty reductions to firms willing to establish production plants in India, provided they commit to a minimum investment of USD 500 million. The aim is to draw in leading global players like Tesla.

According to the policy, enterprises developing EV passenger car manufacturing units can bring in a restricted number of vehicles under a reduced customs/import duty rate of 15% for vehicles priced at USD 35,000 or more. This advantage lasts for five years from the issuance of the approval letter.

Presently, cars imported as fully built units (CBUs) attract customs duties ranging from 70% to 100%, depending on engine size and cost, insurance, and freight value beyond or under USD 40,000. This policy aims to solidify India’s standing as an EV manufacturing hub and entice investment from renowned global EV manufacturers.

Last year, Tesla requested Indian government concessions on import duties to bring their vehicles into the country. In 2022, Musk declared that while the company was advocating for import duty reductions to sell vehicles in India, it would not begin production there until it could first sell and service its vehicles in the market.

Back in August 2021, Musk noted that Tesla might establish a production facility in India if it first found success with imported vehicles. He emphasized the challenge of India’s import duties, stating they are the highest in the world for any large nation.