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Tesla’s India electric vehicle plans on track despite Elon Musk postponing Modi meeting
- The electric vehicle maker is expected to build a base in India given the country’s importance as a sales market, analysts say
- India’s election rules may have prompted Musk’s decision as Telsa’s plan to enter the market could trigger a ‘political slugfest’
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Tesla CEO Elon Musk’s decision to postpone his meeting with Indian Prime Minister Narendra Modi this week has sparked a debate over New Delhi’s ability to lure investors even though his electric vehicle maker is expected to follow through with its plans to set up a manufacturing base in the country.
Industry insiders and analysts cite the ongoing elections in India as the main reason for the billionaire to reschedule his visit, with Delhi preoccupied with campaigning and hindered from announcing any economic policies.
Musk was expected to unveil plans for a manufacturing plant in India after Delhi announced last month lower import taxes on certain electric vehicles for companies that commit to at least US$500 million of investment in manufacturing facilities within three years.
But days before Musk’s much-anticipated visit to India, he backed out.
“Unfortunately, very heavy Tesla obligations require that the visit to India be delayed, but I do very much look forward to visiting later this year,” Musk said in a post on X - formerly Twitter - on April 20.
Musk’s announcement prompted opposition Congress Party leader Jairam Ramesh to comment on social media that “it was odd that @elonmusk was coming all the way to India to meet an outgoing Prime Minister. He too has now read the writing on the wall and decided to put off his visit.
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