Tesla (NASDAQ:TSLA) CEO Elon Musk is set to visit India in the week of April 22 to meet India Prime Minister Narendra Modi, and is expected to announce plans to start a new factory, according to a report by Reuters on Wednesday.
The report cited persons familiar with the matter who said the meeting will take place in Delhi, and a separate announcement on Musk’s India plans will be made shortly.
Reuters had earlier reported that Musk planned to visit India in April with the intention of scouting sites for a manufacturing plant that would see the EV giant invest around $2 billion.
Meanwhile, media reports have also emerged that Tesla is in talks with Indian conglomerate Reliance Industries as it looks for local partners to work with as it begins operations in India. The states of Maharashtra and Gujarat are reportedly contenders for a potential factory site.
India’s Electric Vehicle Policy, approved by the government in March, aims to promote the country as a manufacturing hub for EVs and specifies a minimum INR 4,150 crore investment and a three-year time frame for setting up manufacturing facilities and beginning production. It also has a five-year time limit for 50% domestic value addition. The policy also lowers the duty on the import of vehicles for investors, a welcome development given the up to 100% import duty applicable on cars.