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Elon Musk To Visit India To Meet Prime Minister Narendra Modi

By Nithya Bose in Business News, posted April 11, 2024

Elon Musk has revealed plans to visit India, where he will meet Prime Minister Narendra Modi.

While the exact date remains unspecified, this visit would be significant, with Musk expected to announce considerable investment plans in India.

In an X post, Mr Musk wrote, " I'm Looking forward to meeting with Prime Minister Narendra Modi in India!"

India recently announced reduced import taxes on electric vehicles (EVs) to attract global car manufacturers.

It’s conditional upon a $500 million investment and the initiation of local production within a three-year timeframe.

Policy change could lead to Tesla coming to India

This policy change appears to pave the way for Tesla, led by Musk.

Musk previously cited high import duties as a barrier to introducing Tesla vehicles in India, one of the fastest-growing major economies.

A senior Indian government official confirmed to the BBC the meeting is slated for the last week of April at Modi’s official residence in New Delhi.

Tesla's potential manufacturing start-up in India will likely be high on the agenda.

Musk's trip coincides with India's extensive six-week election process starting on April 19, where Modi’s Bharatiya Janata Party (BJP) is expected to secure a third consecutive term.

An announcement from Tesla during this period could greatly enhance Modi's reputation for fostering a business-friendly environment, encouraging foreign investments, and generating employment opportunities.

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In June last year, Musk and Modi met in New York, where the Indian Prime Minister encouraged substantial Tesla investments in India, which aligned with the company's strategic plans.

This potential expansion is crucial for Tesla, which faces sales challenges in the US and China.

It’s exacerbated by a factory fire in Europe, shipping disruptions, and increasing market competition.

Despite repeated price reductions to stay competitive, especially against rivals like BYD, Tesla has witnessed a downturn in demand, particularly in the Chinese market.

The company's share value has significantly declined since the beginning of the year.

India surpassed the UK to become the world's fifth-largest economy, and due to a surging manufacturing sector, it rose 8.4 percent in the December quarter.

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