(MENAFN- AsiaNet News) Tesla CEO Elon Musk is set to announce plans for his investment in India, amounting to $2-3 billion, according to media reports.
The money is going to be used to build a new factory in the nation. The report cites two persons with knowledge of the negotiations that the announcement will take place during Musk's visit to New Delhi next week, where he is expected to meet with Prime Minister Narendra Modi.
Musk's visit is significant because it is anticipated that he would disclose his plan to penetrate the third-largest automobile market in the world, where the uptake of electric vehicles is still in its infancy.
The market for electric vehicles (EVs) in India is growing, and Tata Motors is presently leading the very tiny sector. In 2023, just 2% of all automobiles sold were electric vehicles (EVs). However, by 2030, the government wants 30% of new cars sold to be EVs.
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Musk's visit is timed to coincide with Tesla's difficulties in important countries like China and the US, where sales have been declining. As a result, the business announced this week that 10% of its personnel will be laid off. There are no public details available on Musk's agenda while in India; the CEO has simply confirmed his meeting with Modi on social media.
According to sources, Musk is expected to reveal the amount of money he would be investing in India when he is there, but other details, like the exact site of the new facility or its timeframe, are still unknown.
Tesla has been interested in India for a long time with Musk speaking against India's high import taxes on electric cars for many years.
In March, the Indian government announced a new policy for electric vehicles (EVs) that would lower import duties from as high as 100% to 15% on some models, providing the automaker spends at least $500 million and opens a production plant in the nation.
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Tesla has already begun scouting for showroom locations in New Delhi and Mumbai, while its Berlin factory is planning to produce right-hand drive cars intended for export to India later this year.
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