Elon Musk set to visit India for meeting with Prime Minister Modi
Elon Musk has revealed via his social media platform X, formerly known as Twitter, that he plans to visit India to meet with Prime Minister Narendra Modi, although no specific date has been provided.
It is anticipated that the Tesla CEO will unveil significant investment initiatives in the country in the near future.
Last month, India reduced import duties on electric vehicles (EVs) for international automakers that commit to investing $500 million (£399 million) and initiating local production within a three-year timeframe.
In 2021, Musk stated that India’s high import tariffs had hindered Tesla from introducing its vehicles in the world’s fastest-growing major economy.
Mr Musk wrote in a post on Wednesday: “Looking forward to meeting with Prime Minister Narendra Modi in India!”
According to a senior Indian government official speaking to the BBC, the meeting is set to occur in the last week of April and will be held at Mr. Modi’s official residence in New Delhi.
The BBC has learned that Tesla’s plans to commence manufacturing in India will be a focal point of the discussions.
Tesla has yet to respond to a request for comment from the BBC.
Mr. Musk’s visit coincides with the commencement of India’s extensive six-week-long elections on April 19.
Mr. Modi’s Hindu-nationalist Bharatiya Janata Party (BJP) is widely anticipated to secure a third term in office.
An investment announcement by Tesla during the election period would enhance Mr. Modi’s pro-business image. He has actively courted foreign companies to establish manufacturing operations in India and generate employment opportunities.
The two leaders met last June in New York, during which Mr. Musk stated that Mr. Modi had been urging Tesla to make significant investments in India, a commitment that Tesla intends to fulfill.
Tesla’s decision to expand into India comes amidst challenges in the US and Chinese markets, with sales weakening notably in the first quarter of this year. Factors contributing to this decline include a fire incident at Tesla’s European factory, disruptions in global shipping, and intensified competition from other automakers.
To counteract this trend, Tesla has repeatedly slashed prices, responding to heightened competition from companies like BYD. However, demand in critical markets such as China has declined.
Since the beginning of the year, Tesla’s shares have dropped by nearly a third in value.
India surpassed the UK in 2022 to become the world’s fifth-largest economy, experiencing a robust 8.4% growth in the December quarter, buoyed by a thriving manufacturing sector.