Will India be Tesla’s new El Dorado for electric cars?

Elon Musk, the eccentric boss of Tesla, has announced an upcoming trip to India on his X account.

Tesla is looking for investment, and Elon Musk announced that he will meet Indian Prime Minister Narendra Modi in India, but without specifying a date. This meeting may mark an important step for the establishment of Tesla in India and making a major investment in the country.

In the social network he owns, Elon Musk expressed his happiness to meet Narendra Modi, but no official confirmation of the date of the meeting has yet been made. Indian media are speculating that this meeting may take place in the week of April 22, but nothing has been confirmed.

New financial incentives that could attract Tesla

The trip comes as India prepares for general elections, with the Hindu Bharatiya Janata Party (BJP) led by Narendra Modi expected to win a third term in power. The political context may have an impact on the discussion between Elon Musk and Narendra Modi, but also on Tesla’s possible investment in the country.
The Financial Times recently reported that Tesla plans to send a team to India this month to study a possible location for an electric car factory, with an estimated investment of between two and three billion dollars. This move follows the Indian government’s announcement last month, reduce the import duty of electric vehicles for foreign manufacturers who are willing to invest 500 million dollars and start local production in the next three years..
The 15% cut in import duty on electric vehicles above $35,000 has been hailed as a potential win for Tesla, which has long been hampered by high excise duties in India. Elon Musk himself expressed his frustration about this in 2021, saying that this tax had prevented the shipment of Tesla cars to the country.

India and its growth climate attract investors

The meeting between Elon Musk and Narendra Modi will not be the first. The two men already met last June in New York, where Narendra Modi urged the Tesla boss to invest more in India. Narendra Modi then described the meeting as “wonderful”focusing on conversations ranging from energy to spirituality.

I look forward to meeting the Prime Minister @NarendraModi in India!

– Elon Musk (@elonmusk) April 10, 2024

India’s economic outlook is also an important factor in this change. In 2022, the country became the fifth largest economy in the world, and its growth of 8.4% in the fourth quarter of 2023 made it one of the fastest growing countries.

Elon Musk said to himself ” very excited about the future of India”showing its economic potential and its ability to stimulate innovation.