Elon Musk’s first visit to India is poised to be significant in several aspects. During this visit, he may announce investments worth billions of dollars in India through Tesla and other ventures. In light of this, let us delve into what Musk is bringing to India besides Tesla and how his visit will impact the country.
Business magnate and Tesla owner Elon Musk, listed among the world’s wealthiest individuals, is set to visit India next week. His inaugural visit to India is anticipated to be momentous. Musk is expected to unveil plans for significant investments in India, not only through Tesla but also through other businesses. Here’s a glimpse of what Musk is bringing to India besides Tesla and the anticipated changes following his arrival.
What Musk is Bringing for India
Elon Musk aims to introduce not just Tesla but the entire electric vehicle (EV) ecosystem to India. Besides establishing a Tesla plant in India, Musk plans to create the complete Tesla ecosystem in the country. This entails manufacturing various electric vehicle models locally and sourcing components domestically as much as possible. Additionally, Musk may introduce Starlink, his satellite internet company, to India. Moreover, under the Foreign Direct Investment (FDI) rules in the space sector, Musk may explore opportunities for his space venture.
Musk intends to commence operations of two of his companies, Tesla, specializing in electric cars, and Starlink, offering satellite internet services, in India. Speculations suggest that Musk may discuss an investment ranging from 2 to 3 billion dollars in India.
Anticipated Changes for India
Tata, MG Motors, and Mahindra are the primary electric car manufacturers in India, with the EV segment constituting only two percent of passenger vehicle sales. India seeks to bolster its manufacturing market, and if Tesla establishes a unit in the country, it will significantly boost the Make in India initiative. Tesla’s collaboration with Tata Electronics for semiconductor chips indicates its interest in establishing a supply chain in India. Tesla plans to manufacture Model 2 cars in India, with an estimated price of around Rs 25 lakh, thereby intensifying competition for existing e-car manufacturers and providing consumers with more options.
How India Will Benefit from Musk
Tesla has experienced declining sales and annual earnings over the past two years due to tough competition from Chinese and European companies. If Tesla enters India, it will tap into a new consumer base, potentially revitalizing its sales and earnings.
Starlink’s Potential Impact
Starlink aims to enter the Indian SATCom market by 2022, but it has encountered legal obstacles. The Indian government’s passage of the Telecom Act in 2023 has addressed some of these hurdles, paving the way for Starlink’s licensing. With Starlink’s entry, people will gain access to satellite-based internet, and Musk may launch his satellite internet services in India.
Space X’s Prospects in India
India’s Space Policy in 2023 and the simplification of FDI rules in the sector have cleared the path for SpaceX’s entry into India. With no major obstacles hindering its entry, SpaceX may soon establish its presence in the Indian space sector.