Musk to meet Modi in US, discuss Tesla's India entry
What's the story
Tesla CEO and Trump administration advisor Elon Musk will meet Prime Minister Narendra Modi during his visit to the US next week, CNBC-TV18 has reported.
Musk will meet Modi on February 13 along with a select group of CEOs.
The talks are likely to focus on Tesla's delayed entry into the Indian market and seek early regulatory approval for Starlink, Musk's satellite internet venture in India.
Tesla's entry
Musk to push for lower import duties
As the head of US Department of Government Efficiency (DOGE), Musk would be expected to push for a level playing field for Tesla in India.
Reportedly, the Trump administration wants to push for lower import duties on fully built electric vehicles coming into India.
This follows India's introduction of a scheme last year to promote domestic manufacturing of electric cars, hoping to attract global EV makers like Tesla.
Market
Tesla's plans for India
Tesla plans to launch a low-cost EV by June this year, possibly entering the Indian market by 2025.
The company is scouting locations for showrooms in India but may delay local manufacturing amid a global EV sales slowdown and competition from Chinese EV manufacturers.
In 2023, Tesla's global sales went down for the first time in over a decade with the company delivering 1.79 million units against 1.74 million sold by Chinese rival BYD.
EV incentives
Union Budget reduced import duties on EVs
India's Union Budget recently slashed import duties on EVs over $40,000 from 125% to 70% and scrapped customs duty on lithium-ion batteries.
These steps are likely to be welcomed by Tesla and other EV companies.
The meeting between Musk and PM Modi is expected to be a significant step toward strengthening US-India trade relations.