Tesla CEO Elon Musk is likely to reach New Delhi on Sunday, and meet Prime Minister Narendra Modi on Monday morning to announce his investment plans in the electric vehicle (EV) segment, according to sources.
Musk will stay in New Delhi’s Hotel Oberoi. Sources said Musk is likely to present a roadmap for total investment of around 20-30 billion dollars in India. Amid talks of starting EV sales in India this year, Musk is likely to hold a meeting with startups in Bharat Mandapam. There are chances that the Starlink agreement, however, may not happen during this visit.
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Investment roadmap is likely to have different phases. Sources said there is a possibility of announcement of investment of 2-3 billion dollars in the EV segment. Along with electric cars, a roadmap for investment of component makers may also come. Investment in battery manufacturing facility may also be part of the investment, said sources.
In an interview to news agency ANI, the prime minister was asked about how Musk had said he was a “Modi fan”. “Look, the first thing saying that Elon Musk is a supporter of Modi is one thing, basically, he is a supporter of India. And I just met him. It’s not like that,” Modi said.
Modi said he met Musk twice before – once during a factory visit in 2015 and the other, most recently, during his state visit to the US last year. Recalling the factory visit in 2015, he said the Tesla CEO had cancelled his pre-scheduled commitment to meet him.
“He showed me everything in his factory. And I understood his vision from him. I went there just now (to the US in 2023) and met him again. And now he is about to come to India,” the PM told ANI.
On April 10, Musk confirmed his visit to India and his planned meeting with PM Modi. In a post on X, he wrote: “Looking forward to meeting with Prime Minister @NarendraModi in India.”
In June last year, Musk had met Modi during the prime minister’s US visit. The Tesla CEO had then said he planned to visit India in 2024, while expressing confidence that the company will enter the Indian market soon.
His planned visit comes weeks after the central government announced a new electric vehicle policy, under which import duty concessions will be given to companies setting up manufacturing units in India with a minimum investment of $500 million. This is a move aimed at attracting major global players like the US-based Tesla.
At present, cars imported as completely built units (CBU) attract customs duty ranging from 70 per cent to 100 per cent, depending on the engine size and cost, insurance and freight (CIF) value. Among the large countries of the world, India has the highest import duties on cars.
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“I want investment to come to India because, in India, it doesn’t matter who has invested money, (but) the sweat put into the work must be of our own people. The product should have the essence of our soil, so that our youth in the country will get employment opportunities,” he told ANI.
Earlier this month, Musk said it would be a natural progression to provide Tesla EVs in India. “India is now the most populous country in the world, based on population. India should have electric cars just like every other country. It’s a natural progression to provide Tesla electric vehicles in India,” he added.
first published: April 19, 2024, 14:11 IST
Omprakash Tiwary is a business writer who delves into the intricacies of the corporate world. With a focus on finance and economic landscape. He offers readers valuable insights into market trends, entrepreneurship, and economic developments.
