Tesla reportedly might not participate in the upcoming Bharat Mobility Global Expo in New Delhi from February 1 to 3.
What Happened: Although the expo is expected to feature international electric vehicle (EV) manufacturers like Vietnam’s VinFast and China’s BYD, Tesla’s absence is notable, considering the company’s interest over the last two years in entering the Indian market, Moneycontrol reported.
The Bharat Mobility Global Expo, organised for the first time this year, is anticipated to have over 600 exhibitors from more than 50 countries, showcasing various aspects of the mobility industry, including automobiles, automotive components, energy storage solutions and urban mobility.
Why It Matters: This development raises questions about Tesla’s plans for India, especially as the company has engaged in discussions with Indian government officials multiple times throughout 2023. Reports have suggested that Tesla is considering establishing a manufacturing facility in India to produce a ₹20 lakh car.
Despite the anticipation of an announcement during the Vibrant Gujarat Summit in January, neither Elon Musk nor Tesla executives were present. Recent reports also indicate that the Indian government is exploring the possibility of lowering import duties on EVs, a move believed to be in response to a request from Tesla.
The Indian government has been taking steps to promote the adoption of EVs, including offering incentives through the production-linked incentive (PLI) scheme and reducing the goods and services tax (GST) on EVs from 12% to 5%. However, the government expects firm commitments from Tesla to invest and produce in India.
While Tesla’s participation in the Bharat Mobility Global Expo remains uncertain, the event is expected to feature other prominent EV manufacturers, potentially including the return of Great Wall Motors to India and the comeback of U.S. car manufacturer Ford to the Indian market after a two-year hiatus.
Don't miss a beat on the share market. Get real-time updates on top stock movers and trading ideas on Benzinga India Telegram channel.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.