Tesla CEO Elon Musk to meet PM Modi in India, will invest $3 bn initially

Tesla chief Elon Musk is planning to visit India later this month to meet PM Narendra Modi, where he is expected to make an announcement related to his plans to invest and open a new factory in the country.

Sources told Business Today that Musk is likely to invest nearly $3 billion in the first phase. Later on, it may increase the investment to $10 billion in the country in the coming years.

Musk is scheduled to meet PM Modi in the week of April 22 in New Delhi, and will separately make an announcement about his India plans, Reuters reported.

Tesla officials are in touch with top officials of DPIIT and other ministries to execute its plan.

Earlier it was reported that Tesla officials are expected to visit India this month to look at sites for a manufacturing plant that would require an investment of about $2 billion.

Earlier in the day, it was reported that Tesla is looking for a local partner to establish its operations in India. As per a report in The Hindu Businessline, the US auto major is considering the prospect of a joint venture with Reliance to construct a manufacturing facility here.

Tesla has been scouting various locations, including Gujarat and Maharashtra, as potential sites for the plant. Maharashtra is purportedly emerging as the favoured choice, the report claimed.

Musk, in a Spaces session on X hosted by Nicolai Tangen, CEO of Norges Bank Investment Management, confirmed Tesla's entry into India. "India is now the most populous country in the world. India should have electric cars just like every other country has electric cars. It's a natural progression to provide Tesla electric vehicles in India," he said.

In March, the Centre floated a new Electric Vehicle (EV) policy aimed at promoting the country as a global manufacturing hub for EVs. The policy mandated a minimum investment of Rs 4,150 crore with no maximum investment cap, designed to attract investments from reputable global EV manufacturers.

Besides the minimum investment requirement, the policy entails three years for setting up manufacturing facilities in India, starting commercial production of EVs, and reaching 50 per cent domestic value addition (DVA) within five years at the maximum.

The policy will provide Indian consumers with access to the latest technology, boost the ‘Make in India’ initiative, and strengthen the EV ecosystem by promoting healthy competition among EV players, leading to high volume of production, economies of scale, lower cost of production, reduce imports of crude Oil, lower trade deficit, reduce air pollution, particularly in cities, and will have a positive impact on health and environment, Ministry of Commerce & Industry said in a statement.

Besides, DVA during manufacturing would include a localisation level of 25 per cent by the third year and 50 per cent by the fifth year will have to be achieved, the ministry said.