Piyush Goyal is scheduled for a meeting with Tesla CEO Musk to discuss potential market entry
09 Nov 2023
In a significant development, Indian Commerce Minister Piyush Goyal is scheduled to meet with Tesla CEO Elon Musk in the United States next week. The meeting is all set to be a pivotal step in advancing Tesla's ambitious plan to enter the South Asian market.
This high-profile meeting follows Elon Musk's previous encounter with Indian Prime Minister Narendra Modi in June 2023, during which Musk expressed a keen interest in making substantial investments in India. Discussions between Goyal and Musk are expected to revolve around Tesla's plans to establish a manufacturing facility in India, with the goal of producing a $24,000 car locally. The agenda also includes discussions on sourcing more components within the country and implementing a widespread charging infrastructure across the nation.
One of the key topics on the table is a new policy that India is currently working on, aiming to reduce import taxes on fully built electric vehicles (EVs) to 15%, a significant decrease from the current rate, which can be as high as 100%. Automakers willing to commit to local manufacturing would benefit from this reduced tax rate. The meeting aims to ensure that the ongoing negotiations between India and Tesla are progressing in the right direction.
The talks between Tesla and India have been ongoing for several months, with Tesla expressing its openness to establishing a manufacturing facility in the country while also seeking lower import taxes for its premium vehicles.
In a recent development, Prime Minister Modi's office held a meeting with various ministries to expedite a new EV policy. The proposed policy is under scrutiny for its potential impact on the Indian EV market, as local carmakers have expressed concerns that lower import taxes on EVs could disrupt the market and adversely affect their plans.
It is worth noting that Tesla's initial attempt to enter the Indian market in 2021 faced challenges, with officials insisting on a commitment to local manufacturing before considering a reduction in the 100% import tax for EVs. The upcoming meeting between Piyush Goyal and Elon Musk signals renewed efforts to navigate these complexities and move forward in realizing Tesla's aspirations in the South Asian market.