During his state visit to the United States, Prime Minister Narendra Modi is set to meet with prominent US CEOs, including Tesla’s CEO, Elon Musk. Musk will be among the first group of CEOs to hold talks with Prime Minister Modi in New York on Tuesday evening.
This meeting follows their initial encounter in 2015 when Prime Minister Modi visited the Tesla factory in San Jose. Since then, the Indian government has engaged in multiple discussions with Tesla management regarding the possibility of the company relocating part of its supply chain to India.
While Tesla currently has no concrete plans to establish a manufacturing plant in India, the country holds significant interest as a potential market. Tesla officials were recently in India to engage in discussions ahead of Prime Minister Modi’s visit to the United States.
Over two years ago, Tesla began assembling a team in India with the goal of initially importing cars into the country. The plan was to eventually establish a manufacturing unit once sales reached a certain threshold. However, Elon Musk’s request for a duty reduction on imported Tesla cars from China was declined by India, as it sought a commitment from Tesla to manufacture within the country, rather than providing preferential treatment to a single company.
In recent meetings held at the Prime Minister’s Office (PMO) and other government departments, India has maintained its stance that Tesla should not receive preferential treatment. Nevertheless, Indian officials believe there is a strong case for Tesla to set up manufacturing operations in India, given its status as a prominent automotive market.
Discussions between Prime Minister Modi and Elon Musk, along with other key CEOs, will likely revolve around exploring potential avenues for collaboration and addressing the prospects of Tesla’s involvement in India’s automotive sector.
As the dialogue progresses, stakeholders eagerly await further developments that may shape Tesla’s future presence in India and the growth of the electric vehicle market in the country.
