Tesla CEO Elon Musk is gearing up to disclose his investment plans for India, estimated at $2-3 billion, as he aims to establish a new factory in the country. Musk is slated to unveil these intentions during his upcoming visit to New Delhi next week, where he is scheduled to confer with Prime Minister Narendra Modi, as per two sources familiar with the discussions cited in Reuters report.
Musk’s visit assumes significance, as it is anticipated that he will unveil his strategy to penetrate the world’s third-largest automotive market, where the adoption of electric vehicles (EVs) is still in its nascent stages.
India’s EV market is witnessing an upward trajectory, with Tata Motors currently dominating this relatively small segment. Although EVs constituted a mere 2% of total car sales in 2023, the government has set an ambitious target of having 30% of new cars to be EVs by 2030.
Musk’s visit to India comes at a time when Tesla is facing challenges in key markets like the United States and China, where sales have been dwindling, prompting the company to announce layoffs affecting 10% of its workforce this week.
Details regarding Musk’s agenda in India remain undisclosed, with the CEO confirming only via social media that he will meet with Modi. However, sources suggest that Musk is likely to divulge the investment figure for India during his visit, although specifics such as the timeline or the location within India for the new plant are yet to be revealed.
Tesla has harbored an interest in India for quite some time, with Musk voicing concerns about India’s high import taxes on electric cars for several years. In response, the Indian government unveiled a new EV policy in March aimed at reducing import taxes to 15% from levels as high as 100% on certain models, provided the carmaker invests a minimum of $500 million and establishes a manufacturing facility in the country.
Already, Tesla has commenced scouting for showroom locations in New Delhi and Mumbai, while its Berlin factory is gearing up to produce right-hand drive cars intended for export to India later this year.
Moreover, Musk is anticipated to participate in an event organized by the Indian government in New Delhi focusing on space startups.
(With inputs from agencies)
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