RT team
Tesla CEO Elon Musk is anticipated to declare a $2-$3 billion investment in India, primarily for establishing a new factory, during his upcoming visit to New Delhi. He is scheduled to meet Prime Minister Narendra Modi next week, according to insiders privy to the talks.
During his visit, Musk, who is aiming to penetrate the nascent yet expanding electric vehicle (EV) market of India, will discuss his investment plans. The Indian EV sector, currently led by Tata Motors, represents a small fraction of the car market with EVs accounting for only 2% of the total car sales in 2023. However, the government aims for EVs to make up 30% of new car sales by 2030.
This strategic move comes at a time when Tesla is experiencing a slowdown in sales in its major markets, including the United States and China, and has recently announced a 10% workforce reduction.
While details of Musk’s itinerary remain under wraps, he has confirmed on his social media platform X that his India agenda includes a meeting with Modi. Although Musk is expected to reveal the investment amount, specifics such as the timeline or location for the new factory are not likely to be disclosed immediately.
Tesla’s interest in the Indian market has increased following the government’s recent policy adjustments in March, which reduced EV import taxes significantly to encourage foreign investments in local manufacturing.
In preparation, Tesla is scouting locations for showrooms in New Delhi and Mumbai and plans to export right-hand drive cars from its Berlin factory to India later this year, as reported by Reuters. Additionally, Musk is expected to participate in a government-hosted event in New Delhi focusing on space startups, aligning with his ownership of SpaceX.
