Tesla to invest in India, Elon Musk after meeting PM Modi during his US visit

Tesla's India launch could be just be a matter of days now. The world's largest electric vehicle manufacturer has officially expressed interest to invest in India 'as soon as humanly possible'. On Tuesday, Tesla CEO Elon Musk met Prime Minister Narendra Modi during which he discussed avenues where the EV maker can set up its business in the country. The development is significant as Tesla has finally budged from its earlier stand of not selling its electric cars in India if the government does not reduce import duties.

Tesla CEO Elon Musk was specifically asked the question whether the US-based EV maker will launch its products in India after his meeting with PM Modi in New York. He did not commit to what Tesla is looking for at the moment. According to sources quoted by Reuters, Musk briefed Modi on Tesla's plans to set up a manufacturing base in India. Earlier, when Tesla's team of executives met Indian officials in New Delhi last month, a similar proposal was reportedly offered.

Speaking to reporters after his meeting with PM Modi, Musk said, “We do not want to jump the gun on an announcement but I think it is quite likely that it will be a significant investment in our relationship with India." He also said that he plans to visit India next year. "I would like to thank the prime minister for his support and hopefully we'll be able to announce something in the not too distant future," he added.

Tesla's India launch is seen as the EV maker's strategy to reduce dependency on China for supply chain and EV batteries. China is the largest market for Tesla outside its home base. India could provide an alternative market for the EV maker with cheap labour and resources that could help it set up a manufacturing facility. In May, Elon Musk had said Tesla will finalise the location for its new factory by the end of this year, saying it could be in India.

Tesla does not sell its electric cars in India due to high import duties. However, Musk admitted that India has a strong potential for electric vehicles and battery technology. Globally, Tesla offers some of the top-selling electric cars like Model 3, Model S, Model Y and Model X.