 "Elon Musk")
Elon Musk's upcoming visit to India, aimed at exploring investment opportunities, could potentially lead to Tesla sourcing more components from the country for its plants in Germany and Fremont, reported CNBC-TV18, citing sources.
Scheduled to meet with Prime Minister Narendra Modi and India's burgeoning space technology startups on April 22, this marks Musk's inaugural visit to the country. "Discussions are also expected to encompass investments in electric vehicles [EVs], space exploration, and satellite-based services," sources said.
India's EV market, according to a Reuters report, is currently small but expanding, with Tata Motors emerging as a dominant local player. EVs accounted for only 2 per cent of total car sales in 2023. However, the government aims to significantly increase this, targeting 30 per cent of new car sales to be EVs by 2030.
Musk's visit coincides with Tesla's efforts to address slowing sales in the major markets of the United States (US) and China, with the company announcing layoffs affecting 10 per cent of its workforce this week.
Details of Musk's India visit are closely guarded, with the CEO only confirming on his social media platform X that he will meet PM Modi in India.
Reports suggest that Musk is set to announce an investment in India of $2-$3 billion along with Tesla Inc's long-awaited entry into India. However, the announcement is not expected to include many specifics.
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"Expect a general announcement that the US-based EV maker is coming into India, not a site-specific one. To announce a specific site, Tesla typically needs board approval, which may happen only later. For now, Musk may welcome the EV policy and express eagerness to enter the Indian market soon," an official, was quoted as saying by Moneycontrol.
"It is more of a signaling," the official added.
Musk and PM Modi last met in New York in June. Tesla had lobbied India for months to lower import taxes on EVs while considering setting up a factory in the country.
Last month, the Indian government unveiled a new EV policy slashing import taxes to 15 per cent from 100 per cent on some models if a manufacturer invests at least $500 million and sets up a factory.
Musk's visit also coincides with the general election in India, polling for which starts April 19, in which PM Modi and Bharatiya Janata Party (BJP) are widely seen winning a rare third term.
Tesla has already begun scouting for showroom space in New Delhi and Mumbai, and its Berlin factory is producing right-hand drive cars it aims to export to India starting later this year, Reuters had reported earlier.
Musk is also likely to attend an event organised by the Indian government in New Delhi with space startups, the two sources told the news agency.
