His much-anticipated visit to India in April last year was postponed due to obligations at Tesla. Sources say any meeting between Elon Musk and the Indian government would be a positive one in terms of messaging but may not result in an immediate announcement or commitment to manufacturing in India. In this image made from video provided by Narendra Modi Youtube Channel, Indian Prime Minister Narendra Modi, right, meets Tesla and SpaceX CEO Elon Musk, left, during a meeting in New York, Tuesday, June 20, 2023.(Narendra Modi Youtube Channel via AP)
Musk may also seek early approval for Starlink to begin operations in India. Forging a deeper collaboration with the Indian Space Research Organisation is also likely to be on his agenda.
Musk who is now Donald Trump’s advisor and heads the US Government’s newly formed Department of Government Efficiency (DOGE) is likely to seek a level playing field with domestic car makers in India before beginning retail operations.
Sources say Donald Trump and the US government delegation will likely push for lower duties on importing fully built electric cars in India. While the Indian government launched the Scheme for Promotion of Manufacturing Electric Cars in India last year to woo global electric vehicle OEMs like Tesla, the company has not participated in any recent stakeholder consultations.
However, sources tell CNBC-TV18 that Tesla continues to explore options to enter the Indian market. The company which is launching a low-cost and more affordable electric car by June this year, may introduce this model in India in 2025. The company has also been scouting locations for company-operated showrooms in India.
Musk may seek more time to consider manufacturing in India due to a slowdown in EV sales in some geographies. The company also faces stiff competition from Chinese EV makers. Last year, Tesla’s global sales fell for the first time in more than 10 years. While Tesla delivered 1.79 million cars globally, Chinese car maker BYD sold 1.74 million.
In a strong signal to the US, the Union Budget has slashed import duties on cars costing over $40,000 from 125% to 70%, and basic customs duty on lithium-ion batteries has been scrapped, sending a positive signal to Washington D.C ahead of the Prime Minister’s first meeting with Donald Trump after the latter was sworn in as President for the second term.
(Edited by : Sriram Iyer)
