Elon Musk’s Tesla has decided to put its expansion plans in India on hold following the cancellation of a planned visit to New Delhi. The visit was supposed to include a meeting with Indian Prime Minister Narendra Modi to announce major investments. Bloomberg reports that Tesla executives have not pursued any further inquiries with New Delhi, as the Indian government is aware of the company’s capital issues and has decided not to expect new investments.
Earlier this year, India approved a new policy to attract foreign electric vehicle (EV) makers by offering import duty concessions for companies that invest a minimum of $500 million in manufacturing facilities. Despite initial reports of Tesla scouting locations for a plant in India, Musk postponed his visit, citing heavy obligations with Tesla and visited Beijing instead. The Indian EV market, dominated by Tata Motors, is still relatively small compared to other countries, with electric cars representing only 2% of total car sales in 2023.
While Musk has expressed interest in entering the Indian market, the current focus remains on addressing challenges in Tesla’s existing markets, particularly in China, where the company faces strong competition in the EV sector.
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