Musk Cancels India Visit; Tesla's India Entry Still on the Agenda

Tesla fans in India, hold on! Elon Musk, the company's CEO, was set to visit India this week to announce a major investment, but the trip has been called off. The signs are, however, that Tesla's entry into the Indian market is still very much in the cards.

Factory Plans, Investment Announcement on Hold

Almost every day for the last week, there had been reports that he, Elon Musk, was all set to visit India this week to meet Prime Minister Narendra Modi and announce a $2-3 billion (about Rs 16,700 crore - Rs 25,000 crore) investment to establish a Tesla factory in India to produce and sell locally-made Tesla cars.

The Delay: Too Busy at Tesla HQ

Just a day before his scheduled arrival, Elon Musk announced via X (formerly Twitter) that he must postpone his India trip due to "very heavy Tesla obligations." He had no new date yet. However, he expressed his eagerness to visit later in 2024.

Import Duty Reduction for Local Manufacturing

For months, Tesla has been heard lobbying with the Indian government, protesting the high import tariffs on electric cars. The new policy does that in part. It significantly reduces import duties for certain EVs to 15% from the current 70-100% for a period of five years. However, this benefit does not come without strings. Companies like Tesla must invest at least Rs 4,150 crore, about USD 500 million, and start local production within three years.

What Tesla's India Entry Could Mean for the Indian Market

Tesla has a history of shaking up the automotive industry, and their entry in India is likely to do just that. A lot of price wars and an urge for advancement in EV technology will probably be a boon for Indian consumers.

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RHD Production Points to Imminent Entry

To add fuel to the flames, recent media reports have indicated that Tesla has already started producing right-hand drive vehicles at their German plant, possibly for export to India later this year.

Conclusion

While Elon Musk's visit and the official announcement of Tesla India plans are delayed, the company's intent for the Indian market seems clear. With the news of India's new EV policy, it seems just a matter of time before Tesla arrives at the Indian doorstep. This will likely be a big deal for the Indian electric car market, bringing in fresh technology and offering increased competition for the benefit of all the customers.

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