Good news for Tesla fans! Commerce minister slated to meet Elon Musk | Know what’s in store

New Delhi: Commerce minister Piyush Goyal is slated to meet Tesla boss Elon Musk in the US next week in a bid to explore the entry of the premium electric vehicle (EV) seller, Reuters reported, citing people familiar with the matter. The high-profile meeting follows Musk and PM Narendra Modi’s meeting in June in the US after which the Tesla boss stated that he was eyeing significant investment in India.

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Tesla factory in India?

Musk and Goyal may discuss the potential for Tesla to set up a factory in India to manufacture a $24,000-car. They may also discuss the local sourcing of EV components by the company in India. Tesla may also be tapped to help in setting up a robust charging infrastructure across India, Reuters reported, citing one of the two people familiar with the matter.

Musk’s longstanding demand for slashing import duty on foreign cars may also be discussed, said another person familiar with the matter. Talks may centre around lowering import duty on fully built cars to 15 per cent from 100 per cent at present, the person added. Prime Minister Narendra Modi’s office held meetings across ministries on Wednesday to speed up the new EV policy, said another person familiar with the matter.

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Conflict over lower EV import tax

While Muskl has been keen on entering India since 2021, he held off on plans to enter the market stating that Tesla’s policy is to first sell cars in markets, assess demand for the product, and then proceed to set up a factory unit in any country.

Neighbouring China is a major producer of EVs for Tesla, and Musk visited the country for a whirlwind tour in June to reassure factory workers and meet stakeholders amid rising competition from local EV makers in the country. In the meantime, Musk lobbied the Indian government to slash import duty on cars to make them saleable in India.

Currently, duties on imported cars stand at nearly 100 per cent. Domestic carmakers in India are wary of an import duty cut citing a threat to local production from the lowering of externally produced cars.  Last year, the company wound up its office in India after negotiations with the government hit a wall.

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Is Tesla coming to India in 2023?

Tesla may roll out the Cubertruck and Model-2 car in India until 2025. Overall, the company plans to roll out 2 pickup trucks and 2 sedans in India. The company does not currently sell vehicles in India. In August, Tesla hired Indian-origin executive Vaibhav Taneja as its chief financial officer.

As of date, India has 5 Tesla cars. These are owned by industrialist Mukesh Ambani, actor Riteish Deshmukh, Actor Pooja Batra, and industrialist Prashant Ruia.