On June 20, Tesla CEO Elon Musk said that he had a "very positive" conversation with Indian Prime Minister Narendra Modi (Narendra Modi), who was on a state visit to New York that night.。

A Tesla is not good.

A year after Tesla's first attempt to enter the Indian market was blocked, the project has finally made new progress。In early 2022, Tesla sent a delegation to India to negotiate with the authorities on car exports, but the two sides were slow to agree on the choice of cooperation.。

At that time, out of caution, Tesla wanted to test the local market by importing cars, and then discuss other cooperation matters after the economic benefits reached expectations, which is also the general way for automakers to seek export business.。

India, on the other hand, sees the potential of Tesla's super factory and hopes that Tesla can build a factory directly in India and sell its products directly to the Indian market, so that while Tesla is exploring overseas markets, it can also help India improve its already weak automotive manufacturing chain and production technology, which in turn will drive employment.。

According to media reports, India's Minister of Transport and Transport Nitin Gadkari (Nitin Gadkari) has more than once made it clear that Tesla wants to have the Indian market, it must be built in the local production, and will be "Made in India" Tesla exported to the world.。

In fact, as early as 2016, Musk had hinted at entering the Indian market, but for various reasons, it was delayed.。In February 2017, Musk said on the social networking platform that he had entered the Indian market as early as the summer of that year and had also failed to achieve it.。Later, Musk said in the constant questioning that he would start selling Tesla cars in India in 2019, or put it off again and again.。

Under the constant tug-of-war between the two sides, Tesla's cautious attitude towards the Indian market has only increased.。In a nutshell, the market's natural weaknesses indirectly raise the risk of automakers entering the overseas market, leading Tesla to be cautious about the export project.。

On the one hand, India's high auto import tariffs will significantly raise Tesla's landing costs。According to the Indian government's budget released in February this year, all vehicles with a landing cost (including insurance and freight) of less than $40,000 will be subject to a 70% tariff, up from 60% previously, while vehicles with a current landing cost of more than $40,000 will be subject to a 100% tariff.。

On the issue of tariffs, Musk has broken his heart.。In July 2021, Tesla even wrote to various departments of the Indian government specifically for this purpose, hoping to significantly reduce the import tax on electric vehicles.。At the time, Musk also deliberately tweeted an attractive condition: "If successful in importing cars from India, Tesla will likely set up a factory in India."。"

On the other hand, India's weak spending power has also become a concern for Tesla。According to 2021 data, India's per capita GDP was only $2,277 that year, meaning that most Indians may not have the ability to buy cars, and daily vehicles will prefer two-wheeled motorcycles.。It is reported that the penetration rate of Indian family passenger cars was only 8.5%, while most cars in India sell for less than $20,000, and electric cars account for less than 1% of the market.。

First, import tariffs raise the cost of landing, and then weak end demand may depress the price, one end, Tesla does not account for the benefits, it is no wonder that Musk has backed down.。

The time is right for Tesla to enter India at this time.

In May, things took a turn for the better.。

In mid-May, according to people familiar with the matter, Tesla had held discussions with Indian government officials, asking in detail how car and battery manufacturers should participate in the Indian government-related incentives, which was seen as a signal that Tesla would restart its plans to enter the Indian market.。

At that time, other sources pointed out that Tesla had changed its original strategy and did not mention tariffs again in the meeting, but directly discussed the issue of investing in local factories, reflecting the sincerity and determination of the project to move forward.。In addition to investing in factories in India, Tesla also plans to manufacture car batteries directly in India and has held private talks with Indian officials.。From this perspective, Tesla has made huge concessions。

From Tesla's 2023 quarterly report, Tesla's net profit for the period plunged 24% year-on-year, recording only 25.$1.3 billion; adjusted EPS for the period fell 21% year-over-year, recording only 0.$85, first EPS year-over-year decline since Q3 2019。Against this backdrop, Tesla urgently needs overseas business to develop new business growth points, and plans to enter India are once again on the agenda。

For India, the move is undoubtedly right in its hands。As the world's third largest car market, the current Indian government has put down its bold words to increase the proportion of electric vehicles in India's total car sales from the current 1% to 30% by 2030.。

In order to vigorously develop new energy sources, the Indian government has also released a series of measures this year.。In February, according to the Indian government plan, the authorities will invest 260 billion rupees (about 22.7 billion yuan) in the next five years to provide subsidies for enterprises producing new energy vehicles.。

In late March, Indian Prime Minister Narendra Modi and Japanese Prime Minister Fumio Kishida attended the 14th India-Japan Annual Summit, after which the two sides announced the conclusion of a clean energy partnership and will cooperate in key areas such as new energy in the future.。

From this point of view, Tesla's entry into India at this time is a good time.。The reason for this is that the intertwining of common interests between the two sides has broadened the scope of discussion of the two businesses.。In the context of the continuous introduction of policy subsidies, from Tesla's point of view, the entry into the Indian car market may be a bargaining chip to negotiate tariffs, weakening the landing cost of Tesla models in India and expanding the consumer audience;。

The cooperation between the two sides continues。According to people familiar with the matter, representatives of SpaceX, another company owned by Musk, have also resumed talks with India's Ministry of Telecommunications in recent weeks to collaborate on the establishment of a satellite Internet service Starlink in India.。

Perhaps Musk's business empire and India's honeymoon are coming。