Tesla CEO Elon Musk has confirmed the company’s intention to make significant investments in India for the manufacturing of electric cars. Following a productive meeting with Prime Minister Narendra Modi in New York, Musk expressed his enthusiasm for exploring opportunities in the Indian market.
While a specific deadline was not provided, Musk stated that he plans to visit India next year, responding to an invitation extended by Prime Minister Modi. This visit comes as Modi aims to attract further investments from American companies into India.
Despite previous hints at entering the Indian market, Tesla has faced delays due to India’s requirement for local production rather than allowing the import of vehicles manufactured in China. India, as one of the largest vehicle markets globally, has witnessed the emergence of new electric vehicle models from traditional automakers, while Tesla’s entry has been eagerly awaited.
Musk commended Prime Minister Modi for his dedication to promoting India’s growth, citing Modi’s visit to the Tesla factory in 2016 as evidence of his commitment. Musk described Modi as someone who genuinely wants to benefit India and actively encourages companies to invest in the country.
“Great meeting you today @elonmusk ! We had multifaceted conversations on issues ranging from energy to spirituality,” Modi quoted Musk’s tweet in which he wrote, “It was an honour to meet again.”
“I am quite and fairly excited about the future of India because India offers more promise than any other large country. He (Modi) really cares for India and he is pushing us to make significant investments in India which is something that we tend to do but we just have to wait for the right time,” Musk told reporters after meeting Modi at an upscale hotel in New York.
While Tesla’s entry timeline remains uncertain, Musk acknowledged India’s immense potential for solar energy production, highlighting its significance in the global shift towards sustainable energy sources. India has experienced a surge in electric vehicle sales, including two-wheelers, with 12.47 lakh units sold in the fiscal year 2023, compared to 4.55 lakh units in the previous year.
Notably, established automakers like Tata Motors, MG, and Hyundai have already introduced electric vehicle models in various segments. Moreover, domestic companies are establishing large-scale manufacturing facilities to produce electric scooters.
In addition to his meeting with Musk, Prime Minister Modi is expected to engage with the CEOs of prominent American and global companies during his visit to Washington D.C. Modi aims to attract investment to India, capitalizing on the potential business shifts away from China in the wake of the Covid-19 pandemic. He plans to outline the government’s production-linked incentive (PLI) schemes for various sectors, including electronics and semiconductor fabs, while showcasing other initiatives designed to incentivize further investments.
Several major companies have already made significant strides in India. Apple, based in Cupertino, has increased the production of its flagship iPhones through contract manufacturers like Foxconn and Pegatron, which have invested substantial amounts in their factories near Chennai. Additionally, Cisco has announced plans to manufacture in Chennai, while Foxconn is constructing extensive manufacturing plants in Karnataka and Telangana.
With Prime Minister Modi’s diplomatic efforts and India’s rapidly growing electric vehicle market, Tesla’s entry into India holds the potential to redefine the country’s automotive landscape. As Tesla continues to revolutionize the global electric vehicle market, its foray into India could accelerate the adoption of sustainable transportation and contribute to India’s clean energy goals.
