Tesla CEO Elon Musk was anticipated to satisfy prime minister Narendra Modi in New Delhi over the earlier weekend to announce an funding of USD 2-3 billion (about Rs 16,700 crore-25,000 crore), to construct a manufacturing facility in India and launch made-in-India Teslas within the nation. However, a day earlier than his much-anticipated journey to India, Musk said on X (previously Twitter) that it could be delayed.

“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,” he wrote on the micro-blogging platform.

Unfortunately, very heavy Tesla obligations require that the go to to India be delayed, however I do very a lot sit up for visiting later this yr.

— Elon Musk (@elonmusk) April 20, 2024

1. Musk’s go to to India has been delayed to later this yr
2. New electrical automobile coverage makes for beneficial circumstances for Tesla’s entry

Musk’s go to to India was due after months of negotiations with the federal government when it lastly introduced a coverage decreasing excessive tariffs on imported cars, if firms make investments domestically. Musk had met Modi in New York final yr, and the corporate has been lobbying for decrease import duties on cars earlier than committing to any investments in India.

However, following the federal government’s new electrical automobile coverage in March, Tesla’s identify has been abuzz within the Indian automotive trade.

The new coverage drastically reduces the import obligation on sure electrical cars to fifteen p.c from the present 70-One hundred pc, for 5 years. The decrease obligation is topic to a dedication to take a position at the very least Rs 4,150 crore, or USD 500 million, and make in India inside three years.

The entry of Tesla, which has a legacy of disrupting the market, is predicted to spice up the competitors in India’s electrical car market.A coule of weeks in the past, media studies mentioned Tesla has began manufacturing of right-hand drive cars at its plant in Germany for export to India later this yr.

Also see:

Tata Nexon, Punch greatest Brezza to prime SUV, MPV gross sales chart in FY2024

Indians purchased over 42 lakh cars, SUVs in FY2024