MC Exclusive: Tesla may skip India’s first global mobility expo; VinFast, BYD likely to attend: Sources

American car manufacturer Ford, which had paused its sales and business about two years ago, is also likely to announce a comeback to the Indian market at the mega exhibition next month, the second source said.

International electric vehicle (EV) manufacturers, like Vietnam's VinFast and China's BYD, are likely to attend the Bharat Mobility Global Expo in New Delhi from February 1 to 3. However, the Elon Musk-owned Tesla Inc may give this mega exhibition a miss, sources told Moneycontrol.

“So far, Tesla has not indicated its participation in the expo. However, we have many other major EV manufacturers participating,” one of the sources said.

Bharat Mobility Global Expo

The Bharat Mobility Global Expo is being organised for the first time this year. It is expected to see participation from over 600 exhibitors from more than 50 countries, including specialised exhibitions on EVs.

Bharat Mobility Global Expo 2024 is being organized by multiple industry bodies under the overall guidance of the Ministry of Commerce & Industry, Government of India is scheduled from 1- 3 February 2024 at Bharat Mandapam, New Delhi.

The event will cover the entire value chain of the mobility industry including automobiles, automotive components, supply chain, equipment & components, energy storage solutions, battery recycling, urban mobility, and alternative fuels together at a single venue.

The Auto Expo is currently India’s largest automobile exhibition, which is held every two years.

“Discussions are underway to make the Bharat Mobility Global Expo an annual event and a possible merge with the biennial auto expo,” the second source cited added.

The expo could see a large participation from major international and Indian battery manufacturers and battery supply chain and recycling companies. More than 10 leading companies will also be showcasing their EV infrastructure services, including charging stations and battery-swapping solutions, the government said in a release on January 5.

Around 30 domestic and international OEMs (original equipment makers) are also expected, another source said.

Tesla’s absence

Tesla’s absence in a mega event focusing on mobility is telling, given that the US-based electric car maker has been looking to enter India for over two years now.

Tesla executives have held meetings with Indian government officials at least three times during 2023 as the company is reportedly considering setting up a factory in India to manufacture a $24,000 car.

During his maiden state visit to the US in June, Prime Minister Narendra Modi had met Tesla CEO Elon Musk in New York. That time, Modi had asked Musk to consider India as a potential manufacturing base.

In fact, as recently as last month, media reports were suggesting that the prominent electric car maker may announce plans to set up a plant in India in January during the Vibrant Gujarat Summit in the presence of Musk. However, neither Musk nor executives from Tesla were present in the Summit.

Reports also suggested that the Indian government is looking to lower import duty on EVs, a move seen as a response to a request from Tesla. The US-based EV maker had first tried to enter India in 2021 by pushing officials to lower the 100 percent import tax.

However, India has been reluctant to lower import duties on EVs, given that it could put domestic manufacturers at a disadvantage.

Moneycontrol had reported on December 18 that the Indian government is more open to granting duty concessions on EVs through the free trade agreement (FTA) route with specific nations over lowering import duty for the sector as a whole, a development that is expected to delay Tesla’s India entry.

EV presence

The expo could also see the return of EV maker Great Wall Motors to India, a China-based privately owned automobile manufacturer, which is the eighth largest in Beijing.

American car manufacturer Ford, which had paused its sales and business about two years ago, is also likely to announce a comeback to the Indian market at the mega exhibition next month, the second source said.

Media reports recently suggested that after exiting the country in 2021, Ford is planning to bring back its popular SUVs to India. The presence of key EV makers in the mega exhibition is crucial for India, given the country’s push to incentivise cleaner mobility.

The Indian government has already taken steps to push for the adoption of EVs. Apart from the Production-Linked Incentive (PLI) scheme for the automobile and auto component industry, with a budgetary outlay of Rs 25,938 crore, to provide financial incentives to boost domestic manufacturing of advanced automotive technologies products, including EVs and their components, it has also reduced the goods and services tax (GST) on these vehicles to 5 percent from 12 percent.