Elon Musk likely to invest $2-3 billion for new factories in India

• Follow

Elon Musk, the CEO of Tesla, is poised his reveal his investments plans for India, which are estimated to be worth $2-3 billion, during his upcoming visit to New Delhi. The investments are primarily aimed at establishing new factories in the country.

During his visit to India, Musk is scheduled to meet Prime Minister Narendra Modi as well. It is anticipated that during this meeting, the billionaire will strongly emphasize and seek support for his intentions to enter the world’s third-largest auto market, where the adoption of electric cars is still in its early stages. However, most details of Musk’s visit to India are closely guarded.

India’s electric vehicle (EV) market, although currently at a nascent stage, is growing rapidly and is predominantly led by domestic automaker Tata Motors. EVs accounted for only 2% of total car sales in 2023. However, the government has set an ambitious target for EVs to constitute 30% of new car sales by 2030.

Musk’s visit occurs amidst Tesla grappling with a decline in sales in significant markets like the United States and China. This week, the company also announced layoffs, which will affect 10% of its employees.

According to reports, while Musk is expected to disclose an investment amount for India, he may refrain from providing specific details, such as a timeline or where the plant will be constructed.

Musk has been a longstanding critic of India’s high import taxes on electric vehicles (EVs) and has advocated for a change in policy. In March, the Indian government introduced a new EV policy, reducing import taxes to 15% from levels as high as 100% on certain models, subject to carmakers investing at least $500 million and establishing a factory in the country.

Reportedly, Tesla has initiated the search for showroom locations in New Delhi and Mumbai. Furthermore, its Berlin factory has already begun production of right-hand drive cars, with plans to export them to India starting later this year, as per a Reuters reports.