Indian Commerce Minister To Meet Elon Musk To Accelerate Tesla's Entry Into Market - Tesla (NASDAQ:TSLA)

This story was first published on the Benzinga India portal.

Indian Commerce Minister, Piyush Goyal, has planned a meeting with Tesla Inc's TSLA CEO, Elon Musk, in the United States, recent media reports have suggested. The high-level discussion is aimed at facilitating Tesla's foray into India's massive market.

The forthcoming meeting, which follows Musk's interaction with Indian Prime Minister Narendra Modi, will delve into Tesla's plans to set up a manufacturing base in India. Key talking points will include the production of a budget-friendly $24,000 electric vehicle, the enhancement of local component sourcing, and the establishment of a comprehensive charging network.

A critical point of discussion will be India's evolving electric vehicle (EV) policy, which may permit automakers to import fully assembled EVs at a substantially reduced tax rate of 15%, provided they commit to local production. This policy could be a turning point, potentially bringing down import taxes from the current hefty 100%.

The dialogue aims to align Tesla's goals with India's strategic direction, ensuring a seamless path forward for both parties. With Tesla planning to set up a factory and seeking tax concessions for its premium models, India is eager to speed up its new EV policy, which was a topic at a recent high-level meeting led by PM Modi's office.

The government is also assessing the policy's potential effect on the domestic EV market, being aware of local manufacturers' concerns that lower import taxes might disrupt their operations.

Tesla's entry into India has encountered several obstacles, with initial efforts in 2021 stalling over the import tax dispute. However, these revived discussions have set the wheels in motion again, potentially leading to a significant agreement that could boost India's standing in the global EV race.

Market News and Data brought to you by Benzinga APIs