Tesla chief Elon Musk this morning said he has postponed his planned trip to India due to “very heavy Tesla obligations”, a day before his two-day visit would have begun. Musk, who owns Tesla and SpaceX, was to meet Prime Minister Narendra Modi on Monday and announce investment plans in India.

The world’s richest man confirmed he has delayed his trip, but said he looks forward to visiting India later this year.

“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 said on X, formerly Twitter.

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.)

Prime Minister Narendra Modi meets Tesla and SpaceX CEO Elon Musk, in New York, USA. File.
| Photo Credit: PTI

American electric car maker Tesla CEO Elon Musk is visiting India later this month to meet Prime Minister Narendra Modi and is likely to announce the company’s investment plans in the country, according to sources.

Mr. Musk, who has described as a ‘natural progression’ to provide Tesla electric vehicles in India, is likely to be accompanied by other company executives during the visit that is expected in the week of April 22, a source said.

An e-mail query sent to Tesla to confirm Mr. Musk’s visit remained unanswered.

In June last year, Mr. Musk met with Mr. Modi during the latter’s US visit and stated that he planned to visit India in 2024 while expressing confidence that Tesla would enter the Indian market soon.

His upcoming visit to India comes weeks after the government announced a new electric vehicle policy under which import duty concessions will be given to companies setting up manufacturing units in the country with a minimum investment of USD 500 million, a move aimed at attracting major global players like Tesla.

As per 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 USD 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% to 100%, depending on engine size and cost, insurance and freight (CIF) value less or above $40,000.

The policy seeks to promote India as a manufacturing destination for EVs and attract investment from reputed global EV manufacturers.

Last year, Tesla approached the Indian government seeking duty cuts to import its vehicles in India.

Previously in 2022, Mr. Musk had said that Tesla, which was earlier seeking a 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, Mr. 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!”