Tesla continues to advance plans to enter the Indian market. Reports show that the country has stepped up its efforts to speed up the manufacturer’s welcome and its Commerce Minister is due to meet with Elon Musk next week.
India’s Commerce Minister Piyush Goyal has scheduled a meeting with Tesla’s CEO in the United States next week, according to Reuters sources familiar with the plans. This is an important indication that the country continues to actively engage with the company to accelerate its entry into the Indian market. The meeting between Goyal and Musk will be the most significant since the manufacturer’s CEO met with Indian Prime Minister Narendra Modi in June.
Discussions between Musk and Goyal in the US will center around Tesla’s plans to open a factory in India, build a car there that will cost around $25,000, source more local components, and build out charging infrastructure across the country, another source familiar with the matter told Reuters.
Moreover, during the meeting, the new policies India is working on will also be discussed. The country will allow automakers to import fully assembled electric vehicles at a reduced tax rate of 15%. This is a huge step towards the development of EVs; at the moment, the tax rate is 100% of the cost of the car. The meeting is meant to ensure that talks between India and Tesla are moving in the right direction, the source added.
Earlier this week, it was reported that India was stepping up its efforts to welcome Tesla into the country. Government departments are actively working to issue the necessary permits to begin operations by January 2024. In this regard, an important meeting was held at the Prime Minister’s Office, the main focus of which was on accelerating Tesla’s entry into the Indian market.
Earlier this year, Tesla’s top management submitted its plan to the Indian government to set up vehicle and battery manufacturing bases in India. After meeting Modi in June, Musk said the company was ready to make major investments in the country. Meanwhile, local officials are urging the government to smooth out any problems with Tesla to speed up the start of the company’s production plans in India.
