New Delhi. Tesla owner Elon Musk may announce big investment in India. He will come to India next week and meet Prime Minister Narendra Modi. Musk is set to announce an investment of $2 to 3 billion to set up a Tesla factory in India. Musk will meet the prime minister on Monday and is expected to announce Tesla’s entry into the world’s third-largest auto market during the meeting, according to two sources familiar with the matter, news agency Reuters reported.
Looking for showrooms in Delhi and Mumbai
According to Reuters report, Tesla has started looking for showroom locations in New Delhi and Mumbai. The company’s Berlin factory is producing right-hand drive cars, which the company aims to export to India by the end of this year. Both sources said Musk may also attend an event organized by the Indian government in New Delhi with a space startup. Musk also owns American space company SpaceX and social media platform X. His net worth is currently estimated at $178 billion, making him the third richest person in the world.
India’s EV market is continuously growing
India’s electric vehicle market is still small but growing, significantly dominated by local carmaker Tata Motors. The adoption of electric cars in India has been slow, with electric vehicles accounting for only 2% of total car sales in 2023. However, the government aims for electric cars to account for 30% of new car sales by 2030.
Tesla sales are declining in America and China
Musk’s visit comes at a time when Tesla is facing slow sales in key markets like the US and China. Additionally, the company announced a 10% reduction in its workforce earlier this week. Details of Musk’s visit to India have been kept confidential. The CEO has only publicly confirmed on his social media platform X that he will meet Modi in India. Sources have said Musk may reveal investment figures for India, but could not give specific details about the timeline for setting up the factory or which Indian state it would be located in.
Tesla has been looking to enter India for many years
Musk had been opposing India’s high import taxes on electric vehicles for several years and advocating for change. In March, the Indian government introduced a new electric vehicle policy, reducing import duty on certain models from 100% to 15%, provided carmakers invest at least $500 million and set up a factory.