In response to a meeting with Indian Prime Minister Narendra Modi in New York, Tesla CEO Elon Musk stated on Tuesday that the business is seeking to invest in India “as soon as humanly possible.”
“[Modi] truly cares about India, as seen by the fact that he is pressuring us to make large investments there, which is something we want to do. Musk told reporters, “We are just attempting to determine the ideal date.
He stated, without giving a timeframe, “I am convinced that Tesla will be in India and would do it as soon as humanly feasible. Speculatively, Musk stated he’ll travel to India in 2019.
It has been planned for a long time that Musk will enter the Indian market. In 2017, the CEO declared that Tesla (TSLA) intended to start selling vehicles in India as early as that summer.
However, Tesla’s efforts to work out cheaper import taxes with the local authorities have caused a delay in that plan. Musk stated on Twitter in 2021 that Tesla was interested in expanding into India, “but import duties are the highest in the world by far of any large country.”
Tesla had requested a reduction in the taxes, but according to Reuters, the Indian government wants the business to produce cars there first before considering any tax discounts.
Musk stated on Tuesday that he had a “fantastic meeting” with Modi and is “incredibly excited about the future of India.”
“[Modi] really wants to act morally for India. He wants transparency and assistance for the businesses. Naturally, we must also ensure that it benefits India at the same time,” Musk remarked.
near Asia, Tesla presently operates one gigafactory, which is situated near Shanghai. More than half of Tesla’s international deliveries in 2022 came from the Shanghai factory, which is the company’s largest automobile production facility outside of the US.
Musk stated at a gathering last month that the business will probably decide on a site for a new Tesla plant by the end of the year and that India was an intriguing option, according to Reuters at the time.
In an effort to grow the EV business, both China and India have been courting foreign investment.
In its most recent move to stimulate sales and production in the largest EV market in the world, China stated on Wednesday that it will prolong tax reductions for consumers buying new energy vehicles through 2027. These vehicles include battery electric cars, plug-in hybrids, and fuel-cell vehicles. As of right now, NEVs are free from purchase taxes till the end of 2023.
Vice minister of Finance Xu Hongcai stated at a news briefing in Beijing on Wednesday that the tax relief is anticipated to total 520 billion yuan ($72.3 billion) between 2024 and 2027.
The action followed a State Council meeting earlier this month, at which senior officials declared they would research public measures to encourage the development of NEVs and maximize tax exemption.
Musk’s first trip to China following the epidemic took place from May 30 to June 1. While there, he met with many government representatives to talk about EV growth and Tesla’s business in the nation.
He also paid a visit to the Shanghai gigafactory, congratulating the staff and claiming that it produces Tesla cars of the “highest quality” anywhere in the world.
The Communist Party leader of Shanghai, Chen Jining, was another person Musk spoke with before departing. Chen Jining reportedly urged Musk to increase investment and operations as well as “bring more new products, new technologies, and new services” to the city.