Tesla CEO Elon Musk Confirms Upcoming India Visit, Meeting With PM Modi

New Delhi: Tesla’s CEO Elon Musk has publicly affirmed his forthcoming trip to India and his intention to meet with Prime Minister Narendra Modi. In a recent social media update, Musk expressed his eagerness about the rendezvous, stating, “Looking forward to meeting with Prime Minister @NarendraModi in India.”
The week of April 22 is the expected timeframe for Musk’s arrival in India. It is speculated that during this visit, Musk will unveil Tesla’s investment intentions for the Indian market.

This announcement trails Musk’s interaction with Modi during the latter’s visit to the United States last June. At that time, Musk had articulated his plans to visit India in 2024 and voiced optimism about Tesla’s imminent entry into the Indian automotive sector. Musk’s visit is timely, coinciding with the Indian government’s rollout of a new electric vehicle (EV) policy.

This policy introduces import duty incentives for enterprises that establish manufacturing plants in India with an investment threshold of USD 500 million. This initiative is designed to entice leading global entities like Tesla to set up shop in India.

Under the new policy, entities that establish EV passenger car manufacturing facilities will benefit from the privilege to import a finite quantity of vehicles at a reduced customs/import duty of 15 percent for cars valued at USD 35,000 or more. This concession is valid for five years from the issuance of the approval letter by the government.

Currently, the import duty on completely built units (CBUs) ranges from 70 to 100 percent, contingent on the engine size and the cost, insurance, and freight (CIF) value.

CBUs with a CIF value exceeding USD 40,000 are subject to a 100 percent import duty, applicable to petrol engines larger than 3000 cc and diesel engines over 2500 cc. Conversely, CBUs valued under USD 40,000 are levied a 70 percent duty, applicable to petrol engines smaller than 3000 cc and diesel engines under 2500 cc.

The policy’s objective is to position India as a prime manufacturing hub for EVs and to draw investments from esteemed global manufacturers. Last year, Tesla had petitioned the Indian government for duty reductions on its vehicle imports.

Musk had previously declared in 2022 that Tesla, which had been lobbying for lower import duties to market its vehicles in India, would refrain from manufacturing its products in the country unless permitted to first sell and service its cars.

In August 2021, Musk had suggested that Tesla might consider establishing a manufacturing unit in India contingent on the success of its imported vehicles. He had lamented that India’s import duties were “the highest in the world by far of any large country,” yet remained hopeful about Tesla’s launch in the Indian market.