Musk to announce Tesla's India entry plans on April 22
Elon Musk, the billionaire CEO of Tesla, is expected to announce the company's entry into India on April 22. The announcement will be made after a meeting with Indian Prime Minister Narendra Modi, according to an unnamed high-ranking government official. The official stated that the announcement would broadly outline Tesla's plans for the Indian market, rather than specifying a particular operational site.
Musk confirms India visit and meeting with Modi
Musk has already confirmed his upcoming visit to India and meeting with Modi via a post on X, a microblogging platform he now owns. The post was made on April 10. This will be their first meeting since they last convened in New York in June. Prior to this, Tesla had been lobbying the Indian government for months to reduce import taxes on electric vehicles (EVs), while considering setting up a factory in the country.
Indian government slashes import taxes on EVs
In response to Tesla's lobbying efforts, the Indian government has introduced a policy that reduces import taxes on certain electric vehicle models from 100% to 15%. This tax reduction is contingent upon the manufacturer investing at least $500 million and establishing a factory in India. The policy change aligns with the general election, which begins polling on April 19 and is expected to result in a third term victory for Modi and his Bharatiya Janata Party.
Tesla's manufacturing plans for affordable EVs in India
The unnamed official revealed that Musk intends to use India as a manufacturing base for Tesla's affordable EV priced at ₹20-25 lakh. The strategy also includes producing premium cars within an economical price range in India. "The plan is that Musk makes EVs in India at a price point which will be of a more affordable range," the official stated. Tesla has already begun production of right-hand drive cars at its German gigafactory for export to India later this year.
Tesla's India-made EVs expected to reach other markets
The official also shared that the expectation is for Musk to build a low-cost vehicle in India, similar to Apple's approach, and export to other countries. "Our expectation is that when Musk builds a low-cost vehicle in India, just like Apple, a lot of these will also get exported," the official added. The plan comes as Tesla faces slowing EV demand in its primary markets, the US and China, and increasing competition from Chinese automakers.
