Tesla boss Elon Musk met with Indian Prime Minister Narendra Modi in New York, where the two held talks about investment plans and economic outlook. After the meeting, Musk told the media that he had “excellent and a very good conversation” with the Indian leader.
Musk also declared before the media that he was planning to visit India “next year” and that “he and Tesla are coming to India.”
Tesla CEO also said that he liked PM Modi’s leadership and that he was a fan of PM Modi.
During the meeting, Elon Musk and Indian Prime Minister Narendra Modi engaged in discussions regarding Tesla’s plans and aspirations in India. As per earlier media reports, the primary topics of conversation were expected to revolve around establishing a manufacturing facility in the country and exploring potential incentives for battery production. While Tesla has previously expressed interest in operating in India, no formal agreement has been reached thus far.
India and the EV sector
This meeting takes place amidst a growing trend of US multinational corporations seeking to diversify their supply chains away from China and expand their presence in other regions. The Indian government, in line with its ambition to catch up with China and Europe, has also expressed a desire to promote the adoption of electric vehicles (EVs) within the country.
Leading domestic players in the Indian EV market include Tata Motors, Mahindra & Mahindra, and Ola Electric. Although India is widely recognised as a promising growth market for the automotive industry, the International Energy Agency (IEA) predicts that electric car sales will still constitute a relatively small proportion of the global market, estimated to be around 2-3 per cent of total car sales in 2023.
India a key candidate for next Tesla factory
Last month, Elon Musk announced that Tesla would likely choose a location for a new factory before the end of this year, with India being a particularly interesting prospect for this endeavour.
Companies such as Tesla and Apple face the challenge of reducing their dependence on China as a manufacturing base due to the ongoing tensions between the United States and China. Currently, Tesla’s largest manufacturing facility outside the U.S. is located in China, and the company is also working on a significant facility near Berlin. In March, Tesla unveiled plans to construct a factory in Mexico as well.
