In a development that could mark a significant step in India’s electric vehicle (EV) journey, Tesla CEO Elon Musk is reportedly scheduled to visit India later this month to meet with Prime Minister Narendra Modi. Sources close to the matter, cited by Reuters, indicate that the meeting is slated for the week of April 22 in New Delhi.
This anticipated visit comes against the backdrop of escalating speculation about Tesla’s intentions to invest in India and establish a new manufacturing facility within the country. Reports suggest that Tesla has been in discussions with Reliance Industries for a potential joint venture aimed at setting up a manufacturing base in India.
Tesla’s entry into the Indian market gained momentum with the commencement of production of right-hand drive EVs at its manufacturing facility in Germany. The company’s strategic focus on expanding into India aligns with its broader ambition to penetrate emerging markets and capitalize on the global shift towards sustainable transportation.
Furthermore, a delegation of Tesla officials is expected to undertake a reconnaissance mission to India later this month to assess potential locations for the establishment of its inaugural manufacturing facility. Musk’s recent remarks underscore the importance of India in Tesla’s expansion plans, emphasizing that the country represents a natural progression for the company’s foray into the Indian EV market.
Musk’s visit coincides with recent policy reforms in India aimed at incentivizing domestic EV manufacturing and reducing import taxes on certain electric vehicles. The Indian government’s move to slash import taxes to as low as 15% for automakers committing to invest at least $500 million and initiate domestic manufacturing within three years signals a concerted effort to attract foreign investment and promote the adoption of EVs in the country.
Tesla’s strategic pivot towards India comes at a crucial juncture, with the company facing headwinds in its primary markets, particularly the US and China. Intense competition from domestic OEMs in China and quality and manufacturing challenges in the US have underscored the need for Tesla to diversify its market presence and explore new growth opportunities.
According to Reuters, Tesla is gearing up to commence production of a “mass market” EV by the second half of 2025, signaling its intent to introduce a range of affordable EVs to compete with conventional gasoline-powered and hybrid vehicles. The company’s ambitious expansion plans underscore its commitment to driving the global transition towards sustainable mobility and establishing a foothold in burgeoning markets like India.
