A file photo of Tesla chief Elon Musk.
| Photo Credit: Reuters

Tesla chief Elon Musk has postponed a planned trip to India where he was to meet Prime Minister Narendra Modi on April 22 and announce plans to enter the South Asian market, three people familiar with the matter said on April 20.

“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,” Mr. Musk posted late on Friday on his social media platform X.

After Reuters reported his India trip plans on April 10, the CEO posted on X: “Looking forward to meeting with Prime Minister Narendra Modi in India!”

In New Delhi, Mr. Musk was expected to announce an investment of $2 billion to $3 billion, mainly to build a factory in India, after the government announced a policy lowering high tariffs on imported cars if companies invest locally, Reuters has reported.

Mr. Musk’s planned arrival was to have come two days after the start of the general elections in the country, in which Mr. Modi is forecast to win a rare third term.

New Delhi:

Tesla chief Elon Musk is set to announce an investment in India of $2-$3 billion, mainly for building a new factory, when he visits New Delhi next week to meet Prime Minister Narendra Modi, two sources familiar with the discussions said.

Elon Musk will meet PM Modi on Monday during his India trip, when the billionaire is expected to unveil his plans to enter the world’s third-largest auto market where electric car adoption is still in its infancy.

India’s EV market is small but growing and dominated by local carmaker Tata Motors. EVs made up just 2% of total car sales in 2023, but the government is targeting 30% of new cars to be EVs starting 2030.

Elon Musk’s visit comes as Tesla battles slowing sales in the major markets of the United States and China, and has this week announced layoffs affecting 10% of its workforce.

Details of Elon Musk’s India visit are closely-guarded, with the CEO only publicly confirming on his social media platform X that he will meet PM Modi in India.

The two sources said Elon Musk will likely give an investment figure for India without sharing details such as a timeline or an Indian state where the plant will be built.

Tesla did not immediately respond to a request for comment.

For years, Elon Musk opposed India’s high import taxes for EVs and lobbied for a change. India’s government in March unveiled a new EV policy lowering import taxes to 15% from as high as 100% on some models if a carmaker invests at least $500 million and sets up a factory.

Tesla has already started scouting for showroom space in New Delhi and Mumbai, and its Berlin factory is producing right-hand drive cars it aims to export to India starting later this year, Reuters has reported.

Elon Musk is also likely to attend an event organised by the Indian government in New Delhi with space startups, the two sources said.

Elon Musk owns the US space company SpaceX.

(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)