In a boost to Modi campaign in poll season, Tesla chief Elon Musk confirms India visit and meeting with PM Modi ::: Investments and 'few factory' on cards

"Looking forward to meeting with Prime Minister @NarendraModi  in India!" Elon Musk posted on the microblogging platform X.  

The electricity vehicle maker Tesla chief is set to be in India later this month. After Apple, the Tesla is going to be the big 'investment' story of the poll-bound Modi government. And hence the visit would assume special significance.  

This comes amidst reports of potential investment plans in India including the possibility of a new factory.

Musk had met PM Narendra Modi in the US in June last year and described himself as a "fan" of Namo.  "I am confident Tesla will be in India and will do so as soon as humanly possible," the CEO of the electric carmaker had said.  

The announcement of the billionaire's visit comes less than a month after India had announced a new electric vehicle policy which would cut taxes by as much as 85 per cent on the import of a certain number of EVs to "attract investments by reputed global manufacturers".

Under the policy, companies setting up manufacturing facilities for passenger electric cars would be allowed to import a limited number of units at a reduced customs or import duty of 15 per cent on vehicles priced at a minimum of $35,000 (approximately ₹ 29 lakh) for a period of five years.

It requires EV manufacturers to invest a minimum of ₹ 4,150 crore ($500 million) and gives them three years to set up manufacturing facilities in India. The other key requirement is reaching 50% domestic value addition within five years. The localisation clause states that 25% will have to be achieved by the third year.

It was reported that Tesla officials are expected to visit India in April to scout sites for a manufacturing plant that would require an investment of about $2 billion.  

During a recent discussion on X (formerly Twitter) with Nicolai Tangen, CEO of Norges Bank Investment Management, Elon Musk affirmed Tesla's intention to enter the Indian market. Musk highlighted India's status as the world's most populous country and emphasized the importance of making electric vehicles (EVs) accessible in India, mirroring the trend in other countries. 

"India is now the most populous country in the world. India should have electric cars just like every other country has electric cars. It's a natural progression to provide Tesla electric vehicles in India," Musk stated, underlining the company's commitment to contributing to India's EV landscape. 

Tesla had approached the Indian government last year seeking duty cuts for importing its vehicles. In 2022, Musk declared that Tesla would not commence manufacturing in India unless permitted to sell and service its cars in the country. In the prior year, he had suggested that Tesla could establish a manufacturing unit in India, contingent on the success of its imported vehicles. 

Musk had expressed his desire to launch Tesla vehicles in India, lamenting the 'highest import duties in the world by far of any large country'.

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