Elon Musk’s India visit: What is the plan, agenda?

Musk took to his X (Twitter) account on Wednesday (April 10) to announce this.

When will Musk visit India?

“Looking forward to meeting with Prime Minister Narendra Modi in India!” Musk posted on his X account.

While Musk did not reveal the dates of his visit to India and when he would meet PM Modi, reports say that the X boss will be in India on April 21 and 22.

Musk’s visit to India will come in the middle of Lok Sabha elections for which voting takes place in seven phases from April 19.

Starlink services in India?

Reuters news agency, citing two sources, said the billionaire entrepreneur is expected to make an announcement on investment and a Tesla factory in the country.

Tesla has also begun production of right-hand drive cars at its German plant for export to India later this year, sources have said, the news agency’s report added.

According to a report on CNBC-TV18, Musk will be in India for about 48 hours during which he will make mega announcements, including plans to start Starlink broadband satellite internet services in the country.

Musk and his team will have a meeting with government officials and industry representatives, the TV channel reported citing sources.

He will announce an investment plan of $2-3 billion for India and Tesla is also looking to not only manufacture electric cars for India but also export them to global markets, the report added.

Recently, Musk said India should have electric cars just like every other country.

“India is now the most populous country in the world, based on population. 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,” Musk said in an X Spaces session.

New electric vehicle policy

In June last year, Musk had met Modi during the prime minister’s US visit. Musk then said that he planned to visit India in 2024 while expressing confidence that Tesla would enter the Indian market soon.

Musk's planned visit comes weeks after the government announced a new electric vehicle (EV) policy under which import duty concessions will be given to companies setting up manufacturing units in the country with a minimum investment of $500 million, a move aimed at attracting major global players like US-based Tesla.

According to the policy, the companies that would set up manufacturing facilities for EV passenger cars will be allowed to import a limited number of cars at lower customs/import duty of 15 per cent on vehicles costing $35,000 and above for a period of five years from the date of issuance of the approval letter by the government.

At present, cars imported as completely built units (CBUs) attract customs duty ranging from 70 per cent to 100 per cent, depending on the engine size and cost, insurance and freight (CIF) value.

CBUs whose CIF value is more than USD 40,000 attract a 100 per cent import duty (for petrol engine size more than 3000 cc and diesel engine of size more than 2500 cc). Whereas those with CIF value under USD 40,000 attract 70 per cent duty (for petrol engine size under 3000 cc and diesel engine size under 2500 cc).

The policy seeks to promote India as a manufacturing destination for EVs and attract investment from reputed global manufacturers. Last year, Tesla had approached the Indian government seeking duty cuts to import its vehicles in India.

Previously, Musk had said in 2022 that Tesla, which was earlier seeking reduction in import duties to sell its vehicles in India, would not manufacture its products unless it is allowed to first sell and service its cars in the country.

In August 2021, Musk said that Tesla may set up a manufacturing unit in India if it first succeeds with imported vehicles in the country. He had said Tesla wanted to launch its vehicles in India "but import duties are the highest in the world by far of any large country!"

TN to ‘aggressively pitch itself’ for Tesla manufacturing site

Meanwhile, Tamil Nadu will “aggressively pitch itself” as a manufacturing site for Tesla, according to a report on Bloomberg.

Tamil Nadu’s Minister for Industries, Investment Promotion & Commerce TRB Rajaa, when asked if Tesla was on the state government’s radar, was quoted in the report saying that the state “will be pitching for all opportunities of electric vehicle manufacturing from all global car majors”.

(With agency inputs)