An official stated on Friday that US electric car manufacturer Tesla has not yet communicated its plans for India under the new EV policy. American tech billionaire Elon Musk, CEO of Tesla, had postponed his scheduled visit to India on April 21-22, citing “very heavy Tesla obligations.” Musk was also expected to meet Prime Minister Narendra Modi during his visit. “They (Tesla) are simply silent… the EV policy was always intended for everyone,” the official remarked when asked if the company had informed the government about its intentions.
The official further stated that companies typically announce their commercial decisions. An email inquiry sent to Tesla went unanswered.
In April, Elon Musk confirmed his upcoming visit to India in a post on X, expressing anticipation for his meeting with Prime Minister Narendra Modi. Musk had previously met Modi during the latter’s US visit in June last year, expressing confidence about Tesla’s entry into the Indian market in 2024.
Expectations were high for Musk’s visit, anticipating announcements regarding Tesla’s establishment in India and possibly for his satellite internet venture, Starlink. It was anticipated that Musk would announce plans for Tesla’s manufacturing unit in India, including significant investments, along with strategies for selling Tesla electric vehicles in the country. Additionally, Musk expressed interest in the Indian market for his satellite internet business, Starlink, pending regulatory approvals.
Musk had previously advocated for a reduction in import duties in India to facilitate the sale of Tesla cars. His visit came shortly after the Indian government announced a new electric vehicle policy, offering import duty concessions to companies investing a minimum of USD 500 million in manufacturing facilities in the country, aimed at attracting global players like Tesla.
In a stakeholder consultation meeting for the new EV policy, an advisor representing Tesla, The Asia Group (TAG), participated along with other major automotive manufacturers. The policy allows companies setting up EV manufacturing facilities to import a limited number of vehicles at a reduced customs/import duty of 15 percent for five years.
The new EV policy is designed to promote India as a manufacturing hub for EVs and encourage investment from reputable global manufacturers. Tesla had previously approached the Indian government seeking duty cuts to import its vehicles into the country.
