Elon Musk, the CEO of Tesla, has postponed his planned trip to India, where he intended to meet Prime Minister Narendra Modi and announce Tesla’s entry into the South Asian market. Musk cited heavy Tesla obligations as the reason for the delay but expressed eagerness to visit later in the year.
In a post on X, Musk stated, “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.”
Musk was scheduled to meet Prime Minister Narendra Modi early next week, alongside discussions with senior officials from state governments regarding potential locations for a Tesla assembly unit and meetings with space-tech startup executives.
Anticipation for Musk’s visit arose after his tweet on April 10 expressing excitement about meeting PM Narendra Modi in India. The visit was expected to involve the announcement of a significant investment of $2-$3 billion in India, primarily for building a new factory.
PM Modi’s welcoming stance on investments emphasized the importance of ensuring local empowerment and employment opportunities. Musk’s visit aligned with the Indian government’s recent announcement of a new electric vehicle policy, offering import duty concessions for companies establishing manufacturing units in India with a minimum investment of $500 million.
Under this policy, companies setting up manufacturing facilities for electric vehicle (EV) passenger cars would be permitted to import a limited number of cars at a reduced customs/import duty of 15 per cent for vehicles costing USD 35,000 and above.
Tesla’s interest in the Indian market has been longstanding, with previous attempts to lobby for import duty reductions. However, Musk had emphasized the need for permission to sell and service Tesla cars in India before considering manufacturing operations.
Amidst regulatory challenges, Musk’s satellite communication venture, Starlink, also faced scrutiny in India. Despite controversies in 2021, Starlink applied for a GMPCS license in November 2022, with ongoing examination by the government regarding security aspects.
The postponement of Musk’s visit underscores the intricate balance between corporate commitments and global expansion aspirations. However, it also highlights the significant potential for Tesla and SpaceX in one of the world’s fastest-growing economies.
As Musk navigates Tesla’s obligations and regulatory landscapes, the rescheduled visit to India holds the promise of unlocking transformative opportunities for both Tesla and SpaceX in India’s dynamic market.
