India Prime Minister Narendra Modi has reportedly traveled to the United States on early Tuesday to meet Tesla CEO Elon Musk and 23 others from other sectors, per Times of India.
The meeting between the Indian PM and Tesla Chief has once again fueled rumors that the world’s most valuable automaker will soon erect its next Gigafactory in India. One day after arriving in the US, the Prime Minister met with CEO Musk in New York.
Tesla and India’s discussion progress
The report noted that apart from CEO Musk, PM Modi will also meet 24 relevant people, including economists, artists, and scientists.
However, the one involving Tesla is perhaps the most intriguing meeting PM Modi will attend, as it is about prospective business development.
As EV-a2z has previously reported, both the Indian government and Tesla have been striving to reach an agreement that would result in a domestic development of an EV production plant. However, both parties demanded terms that impeded the possible partnership.
For instance, Tesla initially demanded approval to test the demand first for its EVs in the country by importing China-made units.
On the other hand, India strongly aims to establish local EV production to boost its economy. That said, the government imposed substantial import taxes on vehicles. Some models’ original prices may even double due to the said duties.
Tesla recently demanded that the government temporarily withdraw these import duties to enable the automaker to test the demand for its electric cars. Finally, India agreed with the automaker’s terms but only if it will “explicitly” commit to building a Gigafactory in the country.
Thereafter, the discussions between the two parties eventually slowed, with Tesla CEO Musk meeting Presidents from other countries for a possible investment.
Nonetheless, the mutual interest remained, and it seems they will finally strike a deal with the meeting between the Indian Prime Minister and the Tesla boss today.
“I’m incredibly excited about the future of India. India has more promise than any large country in the world. He (PM Modi) really cares about India as he’s pushing us to make significant investments in India. I am a fan of Modi.”
CEO Elon Musk told the media
See Also:
- Tesla to enter the Indian market with potential vendor base, per report
- Tesla is “serious” about building a production base in India, minister claims
- Tesla “Gigafactory India” meeting focuses on car incentives and battery production, per report
- Tesla proposes the site of its upcoming Gigafactory to Indian officials, per a report
- Tesla puts India entry plans on hold
The second quarter is about to end, and Tesla has announced plans to decide on the location of its next Gigafactory by the end of 2023.
All that said, it is not surprising that the meeting revolved around potential business investments and developments.
