Elon Musk is expected to reveal plans for a significant investment of $2-$3 billion in India during his upcoming visit to New Delhi, where he will meet Prime Minister Narendra Modi. The investment will primarily focus on establishing a new factory. Musk’s visit coincides with his intention to penetrate India’s evolving electric vehicle market, currently dominated by local manufacturer Tata Motors.
Despite being a small portion of total car sales, the Indian government aims to increase EV adoption to 30% by 2030. Elon Musk’s engagement in India comes at a crucial time as Tesla faces challenges in its key markets, prompting strategic shifts. Although specifics regarding the investment are scarce, Musk is anticipated to announce the investment amount without disclosing details like the timeline or location of the plant. His visit follows lobbying efforts to reduce India’s high import taxes on EVs, leading to a recent policy revision that incentivizes investment in local production.
Tesla has already begun preparations by scouting showroom locations and producing right-hand drive vehicles in its Berlin factory for potential export to India. Additionally, Musk is likely to participate in an event showcasing space startups, organized by the Indian government in New Delhi.