Elon Musk’s upcoming trip to India this month has everyone buzzing! It is expected that he will be meeting Prime Minister Narendra Modi to chat about potential investments, especially in setting up electric vehicle (EV) factories. Musk is also expected to unveil some big news during his visit. Word on the street is that Tesla is gearing up to invest a whopping $2-3 billion in building EV manufacturing plants in India.

Ahead of his visit, The Economic Times reports that Tesla has singed a deal with Tata Electronics to acquire semiconductor chips for its global operations. According to the report, the deal was signed discreetly a few months back, highlighting growing clout of Tata Electronics as a reliable provider for prominent international customers seeking a vital component of their semiconductor infrastructure within India.

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Here are 10 points to know about Elon Musk’s visit to India:

1. Tesla is gearing up to electrify India with an expected $2-3 billion investment for local electric car production. Riding on India’s growing demand for eco-friendly rides, Tesla aims to dominate the premium electric vehicle market and expand its global presence.

2. India’s latest policy shift is turbocharging the electric vehicle (EV) scene. With import duties slashed to 15% for EVs priced at $35,000+, carmakers are gearing up to invest a staggering $500 million (Rs 4,150 crore) in local manufacturing within three years. This bold step not only boosts homegrown production but also ignites India’s automotive sector, paving the way for an electrifying future.

3. Companies must hustle to establish EV manufacturing facilities and commence commercial production within a tight 3-year timeframe under the policy. Within 5 years, they face the challenge of achieving a whopping 50% domestic value addition. And by the third year of production, they must hit a 25% localization level. It’s a race to build our own EV ecosystem, with big rewards awaiting those who sprint to the finish line!

4. Tesla’s probable strategy in India: Focusing on high-end electric car models tailored for the local market. Despite policy incentives for EVs, Tesla may prioritize luxury models initially. This approach aligns with their global strategy of introducing premium offerings before expanding to mass-market vehicles

5. Tesla also explores opportunities in India, reportedly engaging in discussions with Reliance Industries for a prospective joint venture aimed at establishing a manufacturing facility. The potential collaboration signals promising developments in the nation’s electric vehicle landscape.

6. Post-Covid, Tesla is diversifying its parts sourcing beyond China. While it manufactures some components like electric motors and batteries, it relies on global suppliers for others. This shift prompts exploration of new markets like India, presenting opportunities for companies like Tata Electronics to become suppliers.

7. Randhir Thakur is leading Tata Electronics to rev up its chip business by bringing on board 50-60 top international experts. With Thakur’s Intel background and industry influence, Tata Electronics aims to leap ahead, catching Tesla’s attention and revolutionizing chip production.

8. Tata ElTata Electronics is blazing trails, expanding chip-making from Tamil Nadu to Gujarat and Assam with a massive $14 billion investment. With a powerhouse team boasting over 1,000 years of combined experience, they’re set to steer India’s semiconductor dreams towards global success.

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9. Reports say that Tesla is scouting showroom spots in New Delhi and Mumbai ahead of its India debut later this year. The electric carmaker, amidst a first-quarter decline in global deliveries, is keen on new markets. Each city will host a 3,000 to 5,000 square feet showroom and service hub. Production of right-hand drive cars in Germany is underway for export to India.

10. In India, the focus on electric mobility primarily favors battery electric vehicles (BEVs), with lithium-ion technology being preferred due to its perceived viability. Government incentives primarily target BEVs, relegating other vehicular technologies to higher tax brackets, reflecting the current strategy to transition away from internal combustion engine vehicles.

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