LAGOS, Nigeria (VOICE OF NAIJA) – Elon Musk has claims that Tesla business is aiming to invest in India “as soon as humanly possible” following a meeting with Indian Prime Minister Narendra Modi in New York.
“[Modi] really cares about India because he’s pushing us to make significant investments in India, which is something we intend to do. We are just trying to figure out the right timing,” Musk told reporters.
“I am confident that Tesla will be in India and will do so as soon as humanly possible,” he said, without specifying a timeline. Musk said he tentatively plans to visit India next year.
The expansion of Musk’s business into India has been planned for a long time. The CEO of Tesla (TSLA) stated in 2017 that the company intended to begin selling vehicles in India as early as that summer.
However, Tesla’s efforts to persuade the local government to agree to decrease import duties have caused a delay in that plan.
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Musk stated in a tweet from 2021 that Tesla was interested in expanding into India, “but import duties are the highest in the world by far of any large country.”
According to Reuters, Tesla had requested a reduction in the taxes, but the Indian government apparently wants the business to produce cars there first before considering any tax discounts.
On Tuesday, Musk said he had a “fantastic meeting” with the Modi and feels “incredibly excited about the future of India.”
“[Modi] really wants to do the right thing for India. He wants to be open, he wants to be supportive to the companies. And obviously, at the same time, make sure that it accrues to India’s advantage,” Musk said.
Currently, Shanghai is home to Tesla’s only gigafactory in Asia. More over half of Tesla’s global deliveries in 2022 came from its Shanghai factory, which is its largest car-making facility outside of the US.
Musk stated at a gathering last month that the business will probably decide on a site for a new Tesla factory by the end of the year and that India was an intriguing option, according to Reuters at the time.
In an effort to grow the EV business, both China and India have been courting foreign investment.
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In its most recent move to stimulate sales and production in the largest EV market in the world, China stated on Wednesday that it will prolong tax reductions for consumers buying new energy vehicles through 2027.
These vehicles include battery electric cars, plug-in hybrids, and fuel-cell vehicles.
As of right now, NEVs are exempt from purchase taxes till the end of 2023.
Vice minister of finance Xu Hongcai stated at a news briefing in Beijing on Wednesday that the tax relief is anticipated to total 520 billion yuan ($72.3 billion) between 2024 and 2027.
The action followed a State Council meeting earlier this month, at which senior officials declared they would research public policies to encourage the development of NEVs and maximize tax exemption.
Musk’s first trip to China following the epidemic took place from May 30 to June 1. While there, he met with numerous government representatives to talk about EV growth and Tesla’s business in the nation.
He also paid a visit to the gigafactory in Shanghai, congratulating the staff and praising them for producing the “highest quality” Tesla vehicles possible with the “most efficient production.”
According to a statement from the government, Musk also had a meeting with Chen Jining, the Communist Party chairman of Shanghai, before departing.
Chen encouraged Musk to increase investment and operations and “bring more new products, new technologies, and new services” to the city.