American billionaire Elon Musk has just reiterated his long-standing ambition to penetrate India with his tech-focused companies, particularly the electric vehicle giant Tesla.
Musk’s remarks came as he congratulated Indian Prime Minister Narendra Modi for winning the recent government election in the country.
Tesla boss teased Indian entry after PM Modi’s election victory
Prominent business tycoon Musk congratulated Prime Minister Narendra Modi on Saturday for his historic election victory on social media platform X. According to NDTV, PM Modi won the election for a record third term to lead the country.
PM Modi’s reelection seems to have boosted the Tesla and SpaceX Chief’s confidence in India. As Musk hinted in his X post, his companies will soon pursue “exciting work in India.”
Musk’s hint stimulated significant excitement among Tesla and tech enthusiasts, including X user @IndianTechGuide, who responded to the announcement.
“We are waiting for your investment!”
Indian Tech & Infra on X
Recent delays
In hindsight, Elon Musk was scheduled to meet Prime Minister Narendra Modi in India in late April 2024. The two leaders are expected to talk about investment prospects in the country, particularly in relation to the market entry of the American EV giant.
However, Musk postponed his planned 2-day trip to India due to “very heavy Tesla obligations.” He moved his visit to the country “later this year.”
“Unfortunately, very heavy Tesla obligations require that the visit to India be delayed, but I do very much look forward to visiting later this year.”
Tesla CEO Elon Musk
This postponed meeting was supposed to be the follow-up discussion after Musk and PM Modi met in the US in June 2023. This latest meeting intensified speculations about Tesla and Starlink’s expansion in the Indian market, with CEO Musk saying he is “incredibly excited about the future of India.”
“He (Modi) really cares about India because he’s pushing us to make significant investments in India, which is something we intend to do; It was a fantastic meeting.”
Tesla CEO Elon Musk
Apart from Musk’s reason, industry insiders and analysts previously suggested that the elections are the primary reason behind the postponed visit in April. CEO Musk is reportedly trying to avoid involvement in BJP and opposition politics during the election season.
Investment prospects
Tesla’s potential investment in the Indian electric vehicle industry is estimated to cost between $2 billion and $3 billion, Financial Times reported in early April, citing “two people with direct knowledge” of the matter.
Tesla reportedly told Indian officials about its plans to produce a smaller EV model locally that would cost less than $30,000 for mass-market customers in the local and several key foreign markets.
Tesla’s intensifying commitment to penetrate the Indian market came after New Delhi announced a new EV policy, reducing import tariffs for foreign automakers.
However, interested automakers who want to import EVs in India must first commit to investing in local EV production within three years, among other requirements.
India remains a significant growth prospect for Tesla, potentially aiding its efforts to sell 20 million EVs by 2030.
