Tesla Inc. CEO Elon Musk is set to meet with Prime Minister Narendra Modi and is anticipated to reveal investment and manufacturing plans in India.
What Happened: Musk announced on X, formerly Twitter, that he will meet PM Modi ahead of the crucial general elections.
According to Reuters, the billionaire entrepreneur will likely make an official announcement regarding his India strategies during the visit.
The visit coincides with India’s upcoming two-month-long election, which commences on April 19. Modi is widely predicted to secure a rare third term, according to recent polls.
See Also: Did Elon Musk Just Confirm Tesla's India Entry With ‘Natural Progression' Comment?
A potential Tesla investment announcement during the election period could further reinforce Modi’s pro-business image, as he has long been advocating for foreign companies to establish manufacturing bases in India.
India recently unveiled a new EV policy, which includes a reduction in import taxes to 15% from 100% on certain models if the manufacturer invests at least $500 million and establishes a local factory.
This policy change has been a key factor in Tesla’s consideration of setting up a factory in India.
Why It Matters: Musk’s visit to India comes at a crucial time for Tesla, as the company faces slowing EV demand in its primary U.S. and Chinese markets.
The Indian EV market, although small, is expanding and is currently dominated by local automaker Tata Motors. The government aims to increase the share of EVs in total car sales to 30% by 2030.
Earlier this month, it was reported that Tesla is in discussions with Mukesh Ambani’s Reliance Industries for a potential joint venture to establish a manufacturing facility in India.
This partnership could be a crucial step for Tesla’s entry into the Indian market, as it would provide the company with a local partner with a strong foothold in the country.
Read Next: U.S. And Taiwan Chip Giants Now Locked In Battle For India's Auto Crown: Report
Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.
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