Tesla remains committed to India expansion despite Musk's postponed visit

Tesla remains committed to India expansion despite Musk's postponed visit
26 Apr 2024

Tesla remains steadfast in its expansion plans in India despite Elon Musk's recent decision to postpone his meeting with Indian Prime Minister Narendra Modi.

Industry analysts suggest that the ongoing elections in India are likely the reason behind Musk's rescheduling.

"Unfortunately, very heavy Tesla obligations require that the visit to India be delayed, but I do very much look forward to visiting later this year," Musk stated on April 20.

India manufacturing plans were delayed recently
Visit details

At his anticipated visit, Musk was expected to reveal his plans regarding establishing a manufacturing facility in India.

As part of a new EV policy, the Modi government recently reduced import taxes on specific electric vehicles for companies pledging a minimum of $500 million investment in manufacturing infrastructure within three years.

However, just two days before his visit to India, Musk withdrew his plans.

Tesla may eventually establish a base in India
Market penetration

Despite Musk's unexpected decision, analysts agree that Tesla will eventually establish a base in India, which overtook Japan as the world's third-largest automobile market in 2022.

Tesla's entry into India's electric vehicle market could heighten competition, prompting local carmakers like Tata Motors to offer discounts due to falling battery prices and productivity-linked incentives (PLIs) offered by the government.