Tesla may make ‘significant investment’ in India after Musk’s meeting with Modi
- Tesla and India revived discussions in May following a year-long stand-off
- While Tesla executives talked about domestic sourcing incentives with government officials during a recent India visit, it did not culminate in a proposal to set up a plant
Tesla is likely to make a significant investment in India, Chief Executive Officer Elon Musk said after meeting with Narendra Modi during the Indian Prime Minister’s US visit to promote development in the world’s most populous country.
“I’m confident that Tesla will be in India and we’ll do so as soon as humanly possible,” Musk told reporters after the meeting. “We do not want to jump the gun on an announcement, but I think it’s quite likely that there will be a significant investment, a relationship with India.”
Tesla and India revived discussions in May following a year-long stand-off. While Tesla executives talked about the domestic sourcing of parts and incentives with government officials during a recent India visit, it did not culminate in a proposal to set up a plant.
Musk, who has been the frequent target of pitches from Indian officials to make electric cars locally, said he plans to visit the South Asian country in 2024.
Leaders in Asia’s third-largest economy want to capitalise on the growing chill between Beijing and Washington by positioning it as an alternative destination for companies seeking to limit their exposure to China. Modi’s New York visit included gatherings with potentially more than 20 high-profile individuals, according to a person familiar with the plans who asked not to be identified discussing private matters.
Collaboration on critical and emerging technologies between US and Indian companies, and reducing regulatory barriers standing in the way of trade in strategic areas, are a key focus of Modi and US President Joe Biden’s meeting scheduled for Thursday, US National Security Adviser Jake Sullivan said at an industry event in New Delhi last week.
Tesla did not respond to an email sent to the press address on its website. Representatives for India’s ministries of external affairs and road transport and highways did not respond to requests for comment.
Musk has been scouting for the location of Tesla’s next factory. Earlier this month, he met Emmanuel Macron, who said France would tout its attractiveness in hosting a possible plant, but it’s for the carmaker to review prospects for projects in Europe. Italy is another suitor.
Musk has engaged with other Asian nations about opening a plant. In November, he said he considers South Korea a top candidate for investment, according to the office of President Yoon Suk Yeol. Musk said he would make a decision after a comprehensive review of investment conditions, including around manpower and technology.
In January, Bloomberg News reported Tesla is close to a preliminary deal to set up a factory in Indonesia that would produce as many as 1 million cars a year.
