It is easy to believe that Elon Musk’s reach knows no limits. But while the world’s richest man may control a space satellite empire, own one of the largest social media platforms, produce the world’s bestselling electric car, and have been given carte blanche by Donald Trump to gut the US government, there is one market that Musk has yet to properly crack: India.Now, with his newfound influence over the Trump administration and global geopolitics, it appears likely that Musk’s entrance into the Indian market, both with his Tesla electric cars and his Starlink satellite internet, may come smoother and faster than expected.When the Indian prime minister, Narendra Modi, travelled to Washington to meet Trump earlier this month, he also sat down privately with Musk, where according to the Indian government, the pair “discussed strengthening collaboration between Indian and US entities in innovation, space exploration, artificial intelligence, and sustainable development”.Trump put it more bluntly: “I assume he [Musk] wants to do business in India.”Up till now, India’s 110% tariffs on imported electric vehicles have prevented Tesla from entering the fast-growing Indian market. However, Musk vowed last year that Tesla would be in India “as soon as humanly possible” – and after his recent encounter with Modi, it seems he is keen to make that a reality.Tesla has already begun advertising for jobs in Mumbai and Delhi, and has signed a lease to open its first showroom in Mumbai. Tesla could also take advantage of a new Indian government scheme that lowers import tariffs on electric vehicles to just 15% if they commit to investing $500m within three years in a factory that will manufacture the cars. However, the tax break applies only to the first 8,000 vehicles, a limit Tesla is likely to push back on.A Tesla factory would be a boon for India, a country that is desperate for foreign investment and job creation, particularly in manufacturing. Nonetheless, Musk has a chequered record for his commitments to investing in India. Last year, he left the Modi government reeling after he made high-profile plans to travel to India, and had dangled the possibility of a $3bn investment to build a Tesla factory in the country, only to cancel the trip at the last minute. Instead, he travelled to rival China – another huge market that Musk has been equally keen to capitalise on – to cut a major deal.Tesla also faces stiff competition from Indian manufacturers, who are already making and selling popular electric SUVs for about a quarter of the £35,000 starting price that a Tesla costs, which would be far above the budget of most Indian families. (Sales of Tesla cars are also plummeting globally, with a 45% decline in Europe in January.)Trump, too, has appeared less enthusiastic about Musk’s ambitions to start making Teslas in India. “Now, if he built the factory in India, that’s OK, but that’s unfair to us. It’s very unfair,” Trump
Could Elon Musk’s newfound political influence help him finally crack India?
