On being asked about Elon Musk's imminent entry to India, during an interview, Prime Minister Narendra Modi told ANI, "I want investment to come to India, it doesn't matter who has invested money, but the work must be of our own people."
Elon Musk is set to meet PM Narendra Modi in India later this month, the Tesla Chief posted on social platform X.
Musk is slated to announce big ticket investments plans in India.
As per media reports, Tesla has intensified efforts to bolster its presence in the Indian market and is looking for suitable locations to establish a state of the art manufacturing plant.
Tesla has been wanting to come to India for a long time. But the company did not make advancements in its plans, citing the country’s high import duty.
Musk had met Modi in New York last year, and the company has been lobbying for lower import duties on cars before committing to any investments in India.
However, following the government’s new electric vehicle policy in March, Tesla’s name has been abuzz in the Indian automotive industry.
The new policy drastically reduces the import duty on certain electric cars to 15% from the current 70-100% for five years. The lower duty is subject to a commitment to invest at least Rs 4,150 crore, or USD 500 million, and make in India within three years.
The entry of Tesla, which has a legacy of disrupting the market, is expected to boost the competition in India’s electric car market.
Major automakers such as Maruti Suzuki and Hyundai Motor India are expected to debut their mass-market electric car by the end of this year or early next year.