Tesla CEO Elon Musk is scheduled to meet India's Prime Minister Narendra Modi today in New York during Modi's visit to the United States, according to two sources familiar with the situation.
Musk and Modi are expected to discuss Tesla's ambitions in the country, setting up a manufacturing base and possible incentives for battery production. Tesla has discussed operating in India in the past, but so far hasn't reached an agreement there.
Tesla's largest manufacturing base outside the U.S. is in China, and it's also working on a major facility outside Berlin. In March, Tesla unveiled plans to build a factory in Mexico.
The meeting comes as more U.S. multinationals look to diversify away from China and broaden their supply chain footprint. India's government also has ambitions to bring more electric vehicles to the country as it tries to play catch-up with China and Europe. Tata Motors, Mahindra & Mahindra and Ola Electric are among the top domestic EV players in India. While India is widely seen as a growth market for the broader automotive industry, the International Energy Agency projects electric car sales still represent a small share of the global market.
"In India and across all regions outside the three major EV markets, electric car sales are expected to represent 2-3% of car sales in 2023, a relatively small yet growing share," the IEA notes.