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New Delhi: Tesla and SpaceX CEO Elon Musk is coming to meet Prime Minister Narendra Modi in India. Elon Musk posted on X (formerly Twitter) that he is looking forward to meeting PM Modi in India. According to reports, Elon Musk will be in India on April 21 and 22. The billionaire will be in the country for 48 hours. Musk will meet Prime Minister Narendra Modi and other government officials as well as industry representatives.
Why Tesla-Led Elon Musk Is Keen On India Entry?
Elon Musk’s interest in entering the Indian market with Tesla is fueled by multiple factors. From India’s growing interest in electric vehicles to its vast market potential, Musk sees a golden opportunity. But what exactly draws him to this South Asian giant?
As we all know, interest in electric cars is rapidly increasing in India, but the market is still small. Last year, only 6 electric cars were sold out of 100, while in China, the figure is 22. In India, 80,000 cars were sold last year, while Tesla alone sells 1.8 Lakhs cars.
The potential is massive in India. This promising opportunity is a significant factor driving Elon Musk’s decision to expand Tesla’s presence in the Indian market.
Earlier, Tesla was not interested in exploring the Indian market due to heavy duties on electric cars. India has been imposing 100% import taxes on electric cars, meaning a Tesla priced at Rs 29 Lakhs rupees would cost around 60 Lakhs rupees in India.
Now, the government has changed its policy. Any company investing 500 million dollars and setting up a factory as well in India can sell cars by paying a 15% import tax. There is hope that Tesla’s cars will be available for around 35 Lakhs rupees.
To recall, Elon Musk and PM Modi met in New York in June. Tesla asked India many times to reduce import taxes on electric cars.
Reportedly, Tesla might invest $3 billion to build a factory for making affordable electric cars in India. These cars, possibly the Model 2, could cost around Rs 25 lakh. Elon Musk may also reveal intentions to introduce Starlink, offering satellite internet in India. However, the regulatory approvals for Starlink are in the final stages, and the company is likely to receive a license soon.
Tesla currently has two vehicle manufacturing facilities outside the US — near Berlin (Germany) and in Shanghai (China). Tesla’s entry into India gives the country’s Make-in-India project a big boost after it got another mega brand Apple to manufacture iPhones in India.
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