Elon Musk Likely to Meet PM Modi

According to a report by CNBC-TV18, Tesla CEO Elon Musk is likely to meet Indian Prime Minister Narendra Modi during the latter's visit to the United States from February 12 to 14. Sources indicate that Musk is likely to be part of a select group of CEOs meeting Modi on February 13, with discussions expected to cover Tesla's entry into India, regulatory approvals for Starlink, and potential collaboration with the Indian Space Research Organisation (ISRO).

Musk, who is also an advisor in the Donald Trump administration, was scheduled to visit India last April, but he had to postpone the trip due to commitments at Tesla. Discussions with Indian officials are likely to be positive, but sources indicate that they may not immediately lead to a formal commitment on Tesla's local manufacturing plans. The Indian government has also brought in schemes like the Scheme for Promotion of Manufacturing Electric Cars in India to attract global EV makers. However, Tesla has not participated in recent stakeholder consultations. However, the company is keen on entering the Indian market and continues to explore potential opportunities.

One of the key topics of discussion will be Tesla's long-awaited entry into India. Import duty has been an issue that has repeatedly been asked for by Musk before he considers full-scale operation. The administration of President Donald Trump is allegedly forcing the relaxation of tariffs for fully built imported EVs, which would come in handy to Tesla and its peers. In a seeming policy shift which can be looked at as being a positive indication, India recently reduced import duties on electric cars costing more than $40,000 from 125 percent to 70 percent and abolished basic customs duty on lithium-ion batteries, measures sure to be heartily welcomed by Tesla.

Musk may also look for an early regulatory go-ahead for the launch of Starlink, his satellite internet venture, in India. Starlink has been eyeing expansion into the country, but regulatory hurdles have stalled its progress. Strengthening cooperation with ISRO is another area of interest as Musk's SpaceX has previously shown willingness to work with India's space agency.

Tesla is also set to introduce an affordable EV this June. According to sources, this variant could be available in India in 2025. The company has been searching for locations to set up its own showrooms in India. However, before the company is willing to produce the vehicle in the country, Musk may demand more time. A global slump in EV sales, along with the increasing onslaught from Chinese companies, has been enough to give Tesla a headache. In 2023, for the first time in over a decade, Tesla's global sales declined to 1.79 million cars. BYD of China sold 1.74 million cars during the same period.

Though Tesla's manufacturing unit in India remains uncertain, Musk's meeting with Modi may well open up future discussions on trade policies, technology collaboration, and investment opportunities in India's booming EV and space sectors.