Tesla's Road to India is appearing to be free of obstacles ever since the EV car manufacturing company's CEO Elon Musk met India's Prime Minister Narendra Modi on Tuesday at the New York Palace Hotel. Billionaire Elon Musk who has at times been critical of the Indian administration lavished praise on Prime Minister Modi after meeting him and announced that he will be visiting India next year hopefully, Tesla pours big investments in India as it has great potential for sustainable energy including solar power, stationary battery packs and electric vehicles. Notably, Elon Musk has been scouting for a new location for Tesla's next factory and is reportedly considering France, South Korea, and Indonesia as possible destinations. Post 'Musk-Modi' meeting the dynamics can be seen changing and Tesla's boss hunt might end in India. However, it is worth noting that negotiations between Tesla and the Government had tanked years ago and this is the reason why there are no Tesla cars on Indian roads today. Now, the question arises why Elon Musk and the Government of India could not reach to a deal last time? Well, this is exactly what True Scoop News brings you-
The deadlock between Tesla and the Indian Government
Tesla Boss Musk in the past had opened up about why his company has not reached India yet after he was asked by a user on his Twitter handle. Musk had informed that Tesla will not manufacture cars in India unless it is allowed to sell and provide service to its electric vehicles. Elon Musk's first to first sell its vehicles did not impress the Government of India which was directly against Prime Minister Narendra Modi's vision 'Make In India' project. : Union Transport minister Nitin Gadkari during an interview with a news portal had stated that Elon Musk is welcome in India only if he wants to manufacture in the country. "Elon Musk is welcome in India. However, it won’t be possible if he is only manufacturing in China and wants a concession for marketing in India.”
Gadkari had further said, "If he manufactures in any Indian state only then he can avail the concession and benefits."
Again after a few months, an Indian user asked Musk to launch Tesla in India so that he can buy the company's car. On that, Elon Musk responded, "We want to do so, but import duties are the highest in the world by far of any large country! Moreover, clean energy vehicles are treated the same as diesel or petrol, which does not seem entirely consistent with the climate goals of India...But we are hopeful that there will be at least a temporary tariff relief for electric vehicles. That would be much appreciated."
We want to do so, but import duties are the highest in the world by far of any large country!
— Elon Musk (@elonmusk) July 23, 2021
Moreover, clean energy vehicles are treated the same as diesel or petrol, which does not seem entirely consistent with the climate goals of India.
Now, the question what actually changed Elon Musk's approach to its India project? Well, let's understand in brief and also understand his latest statement.
The first and foremost reason is growing tensions between USA and China. With USA and China at loggerheads, India is turning out to be the top destination for global companies to set up their factories and Apple is the prime example of it. Apart from USA-China tension, Tesla has been in talks with Indian authorities for months now. It has already registered its business under the name Tesla India Motors and Energy Pvt. Ltd and has also been testing its vehicles in the country. However, Musk wants the government to reduce import taxes on electric vehicles and components. Government officials have previously stated that the EV maker should first start production in India before tax benefits can be considered. The statement of both Musk and Nitin Gadkari have been mentioned above.
Furthermore, last month, Tesla leadership team visited India and engaged in discussions with Indian government officials and Ministers regarding the establishment of a car manufacturing facility and the production of batteries within India.
Modi-Musk Meeting
As per reports, Elon Musk held a "high-level meeting about India's economic potential" with PM Modi, where they discussed investment plans and future prospects. After meeting PM Modi, Elon Musk called himself a 'Modi fan' and lavished praise on him. Here's what Elon Musk said after meeting-
"I am confident that Tesla will be in India and we will do so as soon as humanly possible..We don't want to jump the gun on an announcement, but I think it's quite likely that it will be a significant investment, a relationship with India," Musk informed the media. Furthermore, calling himself "a fan" of Modi, he said the prime minister "really cares about India because he is pursuing us to make a significant investment in India."
Musk says after meeting Modi, Tesla coming to India
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