‘Elon Musk Read Writing On The Wall’: Congress Mocks 'Outgoing PM' Modi As Tesla CEO Postpones India Visit

Elon Musk announced on Saturday that his planned visit to India has been deferred due to pressing obligations with Tesla.

File photo of Congress leader Jairam Ramesh

New Delhi: Elon Musk's decision to postpone his visit to India, originally planned to meet with Prime Minister, has raised questions and speculation. Senior Congress leader Jairam Ramesh on Saturday took a dig at PM Modi. He said, "It was odd that Elon musk was coming all the way to India to meet an outgoing Prime Minister. He too has now read the writing on the wall and decided to put off his visit".

He futher added, "INDIA’s PM will welcome him soon, and the INDIA Government will promote electric vehicles even more aggressively - I myself am a user of one!".

It was odd that @elonmusk was coming all the way to India to meet an outgoing Prime Minister. He too has now read the writing on the wall and decided to put off his visit.

INDIA’s PM will welcome him soon, and the INDIA Government will promote electric vehicles even more…

— Jairam Ramesh (@Jairam_Ramesh) April 20, 2024

Elon Musk's Visit Postponed 

American tech billionaire Elon Musk announced on Saturday that his planned visit to India has been postponed due to pressing obligations with Tesla. Originally scheduled to be in India on April 21 and 22, where he was expected to meet PM Modi, Musk expressed his anticipation for a visit later in the year.

In June last year, Elon Musk met with PM Modi during the latter's US visit and expressed his intention to visit India in 2024, expressing optimism about Tesla's imminent entry into the Indian market. Musk's proposed visit had heightened expectations that he would unveil plans for Tesla to establish a presence in the country, alongside his satellite communication venture, Starlink.

It was anticipated that Musk would announce Tesla's plans to establish a manufacturing unit in India, potentially involving investments amounting to billions of dollars, and outline a roadmap for the introduction of Tesla electric cars in the Indian market.

Beyond electric vehicles, Musk also had his sights set on the Indian market for his satellite internet business, Starlink, pending regulatory approvals. Musk has previously advocated for a reduction in import duties in India to facilitate the sale of Tesla cars in the country. His planned visit coincided with the Indian government's announcement of a new electric vehicle policy, offering import duty concessions to companies investing a minimum of USD 500 million in manufacturing units in India, a move aimed at attracting major global players such as Tesla.

On Thursday, a representative from Tesla, represented by The Asia Group (TAG), participated in a stakeholders' meeting on India's new EV policy, alongside key players in the automotive industry such as Maruti Suzuki, Hyundai, Tata, Mahindra, and others, as well as Vietnam's EV maker VinFast. The consultation aimed to gather insights for framing guidelines for the new EV manufacturing policy.

According to the policy, companies establishing manufacturing facilities for EV passenger cars will be permitted to import a limited number of vehicles at a reduced customs/import duty of 15% for vehicles costing USD 35,000 and above for a duration of five years from the date of government approval.

Tesla's Stance On Manufacturing In India

Presently, completely built units (CBUs) attract customs duty ranging from 70% to 100% based on engine size and CIF value. The new EV policy aims to position India as a manufacturing hub for EVs and attract investments from global manufacturers. Tesla had previously engaged with the Indian government, advocating for duty cuts to import its vehicles into the country.

In 2022, Elon Musk reiterated Tesla's stance on manufacturing in India, stating that the company would only consider establishing manufacturing facilities if it were permitted to sell and service its cars in the country first. Prior to this, in August 2021, Musk had expressed the possibility of Tesla setting up a manufacturing unit in India contingent upon the success of imported vehicles in the market.

However, he also highlighted the challenge posed by India's high import duties, which are among the highest globally for large countries. In addition to Tesla, Musk has been actively pursuing the launch of Starlink operations in India, aiming to provide internet connectivity to remote areas through a constellation of low Earth orbit satellites.

Starlink faced scrutiny in 2021 when it began accepting pre-orders without proper licensing, prompting the government to clarify that Starlink was not authorized to offer satellite-based internet services in India.

Subsequently, Starlink applied for a Global Mobile Personal Communication by Satellite (GMPCS) license in November 2022. Currently, the license application is under review by the Department of Telecom, with the government examining security implications.