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Tesla CEO Elon Musk has announced the company’s intention to invest in India “as soon as humanly possible” following a meeting with Indian Prime Minister Narendra Modi in New York. Musk expressed his confidence that Tesla would establish a presence in India but did not provide a specific timeline for the investment. He tentatively plans to visit the country next year.
Tesla’s interest in the Indian market has been evident for some time. In 2017, Musk stated that Tesla intended to begin selling cars in India that summer. However, the plan faced delays due to negotiations with the Indian government regarding import duties. Musk highlighted the high import duties in India, stating that they were the highest in the world among large countries.
During his meeting with Prime Minister Modi, Musk described it as “fantastic” and expressed his excitement about India’s future. He commended Modi’s dedication to supporting companies and ensuring that it benefits India as a whole.
Currently, Tesla operates a gigafactory in Shanghai, China, which is its largest car manufacturing plant outside of the United States. The factory accounted for over half of Tesla’s global deliveries in 2022. Musk recently stated that Tesla would select a location for a new factory by the end of the year, with India being a promising option.
#WATCH | Tesla and SpaceX CEO Elon Musk, says "I'm incredibly excited about the future of India. India has more promise than any large country in the world. He (PM Modi) really cares about India as he's pushing us to make significant investments in India. I am a fan of Modi. It… pic.twitter.com/lfRNoUQy3R
— ANI (@ANI) June 20, 2023
China and India have actively sought investment in the electric vehicle (EV) industry. China recently announced an extension of tax breaks for consumers purchasing new energy vehicles (NEVs) until 2027, further encouraging sales and production in the world’s largest EV market.
Musk’s visit to China in May included discussions on EV development and Tesla’s operations in the country. He visited the Shanghai gigafactory and praised the workers for producing Tesla’s highest quality vehicles with the most efficient production.
Before departing, Musk met with Chen Jining, the Communist Party chief of Shanghai, who encouraged him to increase investment and operations in the city. The Chinese government has shown support for Tesla’s endeavors and emphasized the importance of bringing new products, technologies, and services to Shanghai.
As Tesla sets its sights on India, it joins the growing movement towards sustainable transportation and renewable energy in one of the world’s most promising markets. The investment will benefit Tesla and contribute to India’s ambitious goals in the EV sector.
