21st June 2023, Mumbai: It was a change of plans for the enigmatic entrepreneur Elon Musk, who had previously resisted the idea of manufacturing Tesla vehicles in India unless the country reduced tariffs for imported cars. However, he now acknowledges India’s immense potential, stating that it holds more promise than any other large country in the world. Musk expressed his admiration for Prime Minister Narendra Modi after their productive meeting, declaring himself a fan of Modi’s leadership.
Elon Musk and PM Modi had a remarkable encounter at Tesla’s Freemont facility, sparking speculation about the entry of the world’s largest electric vehicle brand into India. In 2022, Tesla took the first step by establishing an office in Bengaluru. While the initial plan was to import vehicles through the completely built unit (CBU) route, the high import duties resulted in inflated costs for Tesla cars.
Musk appealed to the Indian government to reevaluate the tax structure, seeking lower tax slabs for Tesla. However, Nitin Gadkari, the Union Minister for Road Transport and Highways, insisted that Musk must manufacture cars in India to benefit from the lower tax rates. Unable to reach a favorable agreement with the Indian government, Elon Musk initially decided against commencing business operations in the country.
Now, following a recent meeting with PM Modi in the United States, Elon Musk has once again announced his intention to bring Tesla to India by next year. The question arises whether the vehicles will be imported through the CBU route or if Musk will choose to establish local assembly facilities in India. The eagerly anticipated entry of Tesla into the Indian market is eagerly awaited by enthusiasts and industry observers alike.
Article by PRITESH PATEL