Tesla CEO Elon Musk is set to meet the Minister of Commerce and Industry, Piyush Goyal, reported Reuters. This meeting is expected to take place in the US next week. Notably, Musk even met with PM Narendra Modi earlier this year and expressed his interest in investing significantly in the country.
The topic of discussions of this upcoming meeting between Musk and Goyal are likely to centre on Tesla’s plans to set up manufacturing factory in India. The company aims to manufacture a $24,000 car and source more components from the country itself. The US carmaker also wants to set up charging infrastructures across the country.
The report also added that they might also discuss India’s new policy that will allow automakers to import fully built EVs into India at a reduced tax rate of 15 per cent, down from 100 per cent. Notably, this policy is still in works. Back in 2021, Tesla had abandoned its plans to enter the Indian market due to inconclusive talks on import duties with the Indian government. The government insisted on local manufacturing and in return, promised other benefits. The government also encouraged Tesla to apply for the production-linked incentive scheme.
As per the report, this upcoming meeting will ensure that the talks are going in the right direction.
Moreover, Prime Minister Modi’s office recently held a meeting with various ministries to expedite the new EV policy. The government is analysing the impact of the said EV policy on the EV market in India. Local manufacturers have often raised concerns that lower EV import taxes could disrupt the market and hurt their plans.
While the meeting primarily focused on general policy matters, a top official revealed to ET that fast-tracking approvals for Tesla’s proposed investment in the country by January 2024 was a prominent agenda item.
In addition to this, Moneycontrol recently revealed that Tesla is planning to begin their first phase in India with direct imports from German Gigafactory. This comes after Indian officials discouraged the company for importing from China’s Shanghai gigafactory.
