Elon Musk, the CEO of Tesla, has plans to meet India's Commerce Minister, Piyush Goyal, in the United States during the coming week. The meeting marks a significant point in Tesla's plans to widen its servicing range into South Asia.
Earlier in June this year, Musk had a sit-down with India's Prime Minister, Shri Narendra Modi. The upcoming interaction with Goyal is viewed as a pivotal step towards accelerating Tesla's debut in India.
What Will They Discuss?
The main topic of conversation between Elon Musk and Piyush Goyal will be Tesla's strategic intentions to establish a manufacturing plant in India, according to Mashable. Tesla wants to build a strong nationwide charging network, improve component localization, and manufacture a $24,000 electric car domestically. A Reuters report stated that people with knowledge of the situation have revealed these important agenda topics.
Additionally, it is anticipated that the conversation will address India's impending policy change, which intends to lower the import tax on fully completed electric cars (EVs) from the present rates, which may reach 100%. The 15% suggested rate reduction would only apply if automakers committed to using local resources for production. The purpose of the meeting is to guarantee that the talks between Tesla and India go on productively and beneficially.
Neither Tesla nor the federal government have formally confirmed the meeting between Piyush Goyal and Elon Musk.
For some months, Tesla and India have been in talks, with the US EV manufacturer indicating that it would want to build a facility and asking for reduced import duties on certain of its luxury cars.
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The source went on to say that since local automakers have voiced worries that reduced EV import tariffs may disrupt the market and influence their plans, the government is also considering the possible effects of the new policy on the Indian EV sector.
Elon Musk Optimistic About India Venture
When Tesla first tried to sell in India in 2021, it petitioned government authorities to lower the 100% import tariff on electric vehicles, per The Hindustan Times. However, things did not go quite smoothly last year when reps clarified that any agreement would necessitate an initial domestic production commitment from Tesla - which eventually derailed the negotiations.
Elon Musk showed a positive outlook about India's prospects in June. He even declared that it was more promising than other key nations worldwide. Following his meeting with PM Modi in New York, he praised Modi's forthright nature and alacrity to show support for start-ups if they agreed to address and fulfill India's demands.
"I am a fan of Modi. He really wants to do the right thing for India. He wants to be open, he wants to be supportive of new companies, but at the same time make sure it accrues to India's advantage," Elon Musk remarked, as quoted by CNBC.
