Days before Elon Musk’s India visit, a Tesla advisor attended a stakeholders’ meeting on India’s new EV policy, according to multiple media sources. A senior official stated that the conference aimed to gather stakeholder feedback for drafting guidelines for the EV manufacturing policy.
The Asia Group (TAG), an advisor to Tesla, represented the company at the meeting. Interestingly, VinFast, Vietnam’s electric vehicle manufacturer, was present as well.
Moreover, the meeting included representatives from top auto companies in India: Maruti Suzuki, Hyundai, Tata, Mahindra, Kia, Volkswagen, and Renault. Additionally, sources revealed that representatives from luxury car manufacturers Mercedes-Benz, BMW, and Audi attended the meeting.
The official stated that the Heavy Industries Ministry presented the new EV policy. The participants primarily focused on understanding the new policy’s specifics more thoroughly.
Also, the meeting leaned more towards consultation than making commitments to future investments.
Tesla’s Entry into the Indian Market
It’s interesting to note that Elon Musk will most likely visit India during the week starting April 22.
Tesla’s involvement came after India decided to ease import duties for specific EV imports and incentivize local manufacturing. Before setting up a manufacturing plant in India, the American EV maker had been pursuing tariff concessions.
The recently introduced EV policy allows for the import of completely built-up (CBU) vehicles with a 15% import duty.
In 2021, Tesla had reached out to central ministries, urging a reduction in import duties on fully assembled cars. Furthermore, based on the car price, the company requested duty reductions ranging from 40% to 15%.
The new scheme allows for the initial import of EV passenger cars (e-4W) with a minimum CIF value of $35,000, subject to a 15% duty rate for five years from MHI’s approval letter. It’s fair to say that the new policy addresses the demand of the American EV giant.
Final Thought
India ranks as the world’s third-largest automobile market and is among the fastest-growing EV sectors.
Currently, the automotive sector’s market size stands at Rs 12.5 lakh crore, projected to exceed Rs 24.9 lakh crore by 2030. Also, India expects a 66% surge in EV sales this year, following nearly doubling in 2023, according to Counterpoint report.
Taking this into account, the tech billionaire may announce Tesla’s entry into the Indian market during his visit.
