Tesla’s entry into the Indian market has been a long-rumoured one but we may finally be nearing the launch of one of the world’s biggest electric car manufacturers in India. Tesla CEO Elon Musk has hinted towards the brand’s arrival in India as a meeting between the country’s prime minister and Musk has now been set for the near future.
Musk posted on X that he’s “Looking forward to meeting with Prime Minister @NarendraModi in India!.” Reports have already begun emerging online suggesting that Elon might be planning to announce Tesla’s Indian expansion strategy during his visit to the country. “India is now the most populous country in the world, based on population. India should have electric cars just like every other country has electric cars. It’s a natural progression to provide Tesla electric vehicles in India,” Musk recently said in an X Spaces session with Nicolai Tangen, CEO at Norges Bank Investment Management.
Reuters reports that Musk could announce Tesla’s plan to invest in and open a new factory in India. Per the report, Musk will meet Modi ‘in the week of April 22 in New Delhi.’ However, the news agency added that Musk’s final agenda for the India trip could still change at the last minute. Tesla officials are also expected to visit India this month to scout for potential sites for a manufacturing plant, which would require an investment of about $2 billion.
Meanwhile, a report from The Hindu Business Line suggested that Tesla is also discussing a potential joint venture with Reliance Industries to establish a manufacturing unit for electric vehicles.
For those unaware, earlier this year, the Indian government also announced a new EV policy that lowered the import duties for EVs to just 15%, where manufacturers will be required to invest a minimum of Rs 4,150 crore with no cap on maximum investment. Meanwhile, as per sources familiar with the development, Tesla has reportedly already started the production of right-hand drive cars for the Indian market at its Berlin factory in Germany, and the company plans to ship some units by the end of 2024. As of now, Tesla produces its Model Y at the Germany-based factory but its unclear if its the same model that will arrive in India as well.
A report suggesting similar information came out last year in November, which said that India was on the verge of finalising an agreement with the automaker that would allow it to import its electric cars to the country beginning as soon as next year. Moreover, it suggested that Tesla could establish a manufacturing facility in India within two years.
All the signs point towards the entry of Tesla in India and once it does, the EV segment in the country will likely heat up with major players such as Tata and Mahindra going against the US-based automaker for the top spot.