Tesla CEO Elon Musk on Wednesday reiterated his company’s plans to invest “significantly” in India for manufacturing electric cars without giving a specific deadline after a “fantastic” meeting Prime Minister Narendra Modi in New York.
Musk, whose Tesla has created a revolution in the global electric vehicle market, also said he is planning to visit India next year on an invitation from Modi, who is pushing for further investments from American firms into India.
“Great meeting you today @elonmusk ! We had multifaceted conversations on issues ranging from energy to spirituality,” Modi quoted Musk’s tweet in which he wrote, “It was an honour to meet again.”
Great meeting you today @elonmusk! We had multifaceted conversations on issues ranging from energy to spirituality. https://t.co/r0mzwNbTyN pic.twitter.com/IVwOy5SlMV
— Narendra Modi (@narendramodi) June 21, 2023
Tesla has been teasing its entry into the Indian market for the past couple of years even as other traditional players are coming up with new model EV vehicles to cater to the growing demand. It is said India’s insistence on Tesla producing its vehicles in the country and not allowing import of cars made in China have been delaying the global EV major’s entry into India, one of the largest vehicle markets in the world.
“I am quite and fairly excited about the future of India because India offers more promise than any other large country. He (Modi) really cares for India and he is pushing us to make significant investments in India which is something that we tend to do but we just have to wait for the right time,” Musk told reporters after meeting Modi at an upscale hotel in New York.
Musk was the first business leader to meet Modi, who arrived in New York on the first leg of his State Visit to the US. After participating in the ninth International Yoga Day celebration at the United Nations, Modi will head to Washington D.C. where he will be hosted by President Joe Biden and First Lady Jill Biden.
Recalling Modi’s visit to the Tesla factory in 2016, Musk said the Indian Prime Minister “really wants to do the right thing for India” and he is pushing for more companies to come to India. “That’s his job…I am a fan of Modi,” the Twitter chairman said.
However, Musk didn’t give a categorical deadline for Tesla’s India entry but confirmed his visit to India next year. The Tesla owner also said India has great potential for creating solar energy which is one of the sustainable energy creation models before the world.
The sales of electric vehicles, including two-wheelers, are picking up momentum in the country with 12.47 lakh units being sold in the 2023 fiscal as compared to 4.55 lakh units. Several traditional players like Tata Motors, MG, and Hyundai currently offer EV cars in different segments, while home-grown companies are setting up massive factories to manufacture electric scooters.
Besides Musk, Modi is also likely to sit down with CEOs of top US and global companies in Washington D.C. to hard sell India as several American firms plan to shift their base from China following the Covid-19 pandemic.
He is likely to explain the production-linked incentive (PLI) schemes launched by his government for various sectors, including electronics and semiconductor fabs, and other initiatives taken to woo further investments.
Cupertino-based Apple has increased production of its flagship iPhones from India through its contract manufacturers like Foxconn and Pegatron who have invested huge amounts in their factories outside Chennai, while Cisco has announced plans to manufacture from Chennai in India. Foxconn is also building massive manufacturing plants in Karnataka and Telangana.
(The writer is in the US for a study tour on Countering Disinformation sponsored by the US Department of State)
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