Elon Musk set to meet PM Modi amid speculations of Tesla's investment in India

Elon Musk, the CEO of Tesla, has announced his upcoming visit to India to meet with Prime Minister Narendra Modi.

This meeting, expected to take place in New Delhi during the week of April 22, is expected to include an announcement about Tesla's investment plans and the establishment of a factory in India, Reuters reported citing sources familiar with the matter.

"Looking forward to meeting with Prime Minister Narendra Modi in India!", Musk said on social media platform X.

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This visit holds significant timing as India is set to commence a two-month-long election starting April 19, with Modi set to potentially secure a rare third term.

An investment announcement from Tesla during this period could enhance Modi's image as a business-friendly leader.

Modi's administration has long been promoting India as an attractive destination for foreign companies, urging them to establish manufacturing operations and generate employment opportunities in the country.

Elon Musk is expected to be accompanied by other company executives during his India visit, as per reports.

Musk and Modi's last interaction took place in New York in June.

Tesla has been lobbying the Indian government for months to reduce import taxes on electric vehicles, even as it considered setting up a factory in the country.

India recently introduced a new EV policy, cutting import taxes to 15 per cent from the former 100 per cent for some models.

This comes with the expectation that the manufacturer invests a minimum of $500 million and establishes a factory.

Earlier reports by Reuters indicated that Tesla officials were set to visit India this month to identify locations for a manufacturing plant, requiring an investment of approximately $2 billion.

Additionally, Tesla has initiated the production of right-hand drive cars at its German facility, targeting exports to India later this year.

"India should have electric cars like every other country has electric cars. It's a natural progression to provide Tesla electric vehicles in India," Musk said on X.

Tesla's expansion into the Indian market comes at a time when demand for electric vehicles is slowing in its primary markets, the US and China, due to increasing competition from Chinese automakers.

Tesla recently reported a decline in first-quarter deliveries, falling short of analyst expectations.

India's electric vehicle market, although currently small, is on an upward trajectory and is predominantly led by local automaker Tata Motors.

Electric vehicles constituted 2 per cent of total car sales in 2023, but the government aims to increase this share to 30 per cent by 2030.

(With inputs from Reuters)