Elon Musk to announce $2 to $3 billion investment in India

Musk in India: Tesla CEO Elon Musk is expected to announce a $2-$3 billion investment in India, primarily for constructing a new factory, during his upcoming visit to New Delhi to meet with Prime Minister Narendra Modi.

Musk is scheduled to meet Modi on Monday to unveil his plans to enter India's electric vehicle (EV) market, which, although currently small, is rapidly growing. EVs accounted for just 2 per cent of total car sales in 2023 in India, but the government aims for 30 per cent of new cars to be EVs by 2030.

The specifics of Musk's investment plan, such as the timeline and location of the factory, are not yet public. However, Tesla has begun scouting for showroom space in New Delhi and Mumbai, and its Berlin factory is producing right-hand drive cars for export later this year.

Musk's visit to India comes as Tesla faces challenges in key markets like the United States and China, with the company recently announcing layoffs affecting 10 per cent of its workforce.

India recently unveiled a new EV policy, reducing import taxes to 15 per cent from as high as 100 per cent on some models if a carmaker invests at least $500 million and establishes a factory.

Musk had previously criticised India's high import taxes for EVs and advocated for a change. His visit and investment plans indicate Tesla's growing interest in the Indian market, which could significantly impact the country's EV industry.

(with Reuters inputs)