After his meeting with Modi on April 22, Musk is probably going to announce Tesla's entrance into India

After his meeting with Modi on April 22, Musk is probably going to announce Tesla's entrance into India

Of course, given the Tesla board's permission for the plant's location in India, a generic statement is more plausible than one that is site-specific.

Prime Minister Narendra Modi with Elon Musk

According to a senior government source, Prime Minister Narendra Modi and billionaire Elon Musk will likely meet on April 22 before the much anticipated announcement of Tesla Inc.'s entrance into India.

To be sure, the communiqué is unlikely to include a lot of details.

"Don't expect a site-specific announcement, but rather a broad one announcing the US-based EV (electric vehicle) maker's entry into India. Tesla normally requires board permission before announcing a particular location, which could not happen right away. For the time being, Musk may applaud the EV legislation and declare that he anticipates entering the Indian market shortly, according to the anonymous official.

This official said, "It is more of a signalling."

On April 10, the Tesla CEO verified the rumors circulating about his trip to India. He said on X, the microblogging site he currently owns, that he was "looking forward to meeting with Prime Minister Narendra Modi in India!"

June was the last time Musk and Modi met in New York. Tesla considered establishing a plant in India and had been lobbying the authorities for months to reduce import levies on electric vehicles.

The Indian government introduced a new EV policy last month that reduces import duties on select models from 100% to 15% provided a manufacturer spends at least $500 million and establishes a facility.

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Musk's visit coincides with the peak of the general election season, which begins on April 19 and is expected to see Modi and his Bharatiya Janata Party win an unprecedented third term.

The person further said that Musk would see Modi the day after arriving in India on April 21.

Regarding the meeting, the official said that although a media briefing is unlikely, a press statement and video after the exchange may be anticipated.

Tesla's prospective intentions for India

Eventually, the goal is to establish India as a base for producing Tesla's entry-level EV model, which is priced between Rs 20 and Rs 25 lakh.

The insider said that "the plan is that Musk makes EVs in India at a price point probably will be of a more affordable range" and that "Tesla's more premium cars may also be manufactured here."

According to a Reuters story earlier this month, Tesla has started producing right-hand drive vehicles at its German facility for shipment to India later this year.

We anticipate that when Musk produces an inexpensive car in India, similar to what Apple does, a large number of vehicles will be shipped to other nations in South and Southeast Asia, as well as Africa. Thus, it may serve exports in addition to the home market," the official said.

Tesla may be making a shift in focus to India at a time when Chinese manufacturers are becoming more competitive and EV demand is slowing down in the company's primary markets of the US and China.

Tata Motors dominates the modest but rapidly expanding Indian EV industry, with its vehicles accounting for only 2% of all automobile sales in 2023. By 2030, the government hopes to reach an ambitious goal of thirty percent.