Musk was expected to announce an investment to build a factory in India.
Tesla CEO Elon Musk was expected to meet prime minister Narendra Modi in New Delhi over the previous weekend to announce an investment of USD 2-3 billion (about Rs 16,700 crore-25,000 crore), to build a factory in India and launch made-in-India Teslas in the country. However, a day before his much-anticipated trip to India, Musk stated on X (formerly Twitter) that it would be delayed.
“Unfortunately, very heavy Tesla obligations require that the visit to India be delayed, but I do very much look forward to visiting later this year,” he wrote on the micro-blogging platform.
Unfortunately, very heavy Tesla obligations require that the visit to India be delayed, but I do very much look forward to visiting later this year.
— Elon Musk (@elonmusk) April 20, 2024
- Musk’s visit to India has been delayed to later this year
- New electric vehicle policy makes for favourable conditions for Tesla’s entry
Musk’s visit to India was due after months of negotiations with the government when it finally announced a policy lowering high tariffs on imported cars, if companies invest locally. Musk had met Modi in New York last year, and the company has been lobbying for lower import duties on cars before committing to any investments in India.
However, following the government’s new electric vehicle policy in March, Tesla’s name has been abuzz in the Indian automotive industry.
The new policy drastically reduces the import duty on certain electric cars to 15 percent from the current 70-100 percent, for five years. The lower duty is subject to a commitment to invest at least Rs 4,150 crore, or USD 500 million, and make in India within three years.
The entry of Tesla, which has a legacy of disrupting the market, is expected to boost the competition in India’s electric car market.A coule of weeks ago, media reports said Tesla has started production of right-hand drive cars at its plant in Germany for export to India later this year.
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