Elon Musk, CEO of Tesla, has announced that he will travel to India to meet with Prime Minister Narendra Modi. According to two sources, the billionaire entrepreneur is likely to announce an announcement regarding investments and a manufacturing facility in the country.

Highlights:

• Elon Musk to meet PM Modi, may announce Tesla investments in India. 
• Timing coincides with the election, boosting Modi's pro-business image. 
• Tesla explores Indian market post-EV policy changes.

"Looking forward to meeting with Prime Minister Narendra Modi in India!" he wrote on X after Reuters first reported on Musk's planned visit this month.

The billionaire will see Modi in New Delhi during the week of April 22 and will make a separate announcement about his India intentions, according to two people who declined to be identified because the trip specifics are classified.

Neither Modi's office nor Tesla responded to requests for comment. Musk's final India itinerary could still alter.

Musk's visit comes as India prepares for a two-month election with almost a billion voters, which begins on April 19 and is widely expected to result in Modi gaining a rare third term.

A Tesla investment declaration during the election would enhance Modi's business-friendly credentials, since he has for years courted international corporations to establish manufacturing plants in India and create job opportunities. The Tesla CEO will be joined by other executives during his tour, according to the initial source.

Musk and Modi previously met in New York in June, and Tesla spent months lobbying India to decrease import levies on electric vehicles as it considered establishing a manufacturing there. Last month, India announced a new EV policy that reduces import duties to 15% from 100% on some models if a manufacturer spends at least $500 million and establishes a facility.

According to Reuters, Tesla officials are slated to visit India this month to look at locations for a manufacturing factory that will cost around $2 billion.

Tesla has additionally begun constructing right-hand drive vehicles at its German plant, which will be added to India later this year, according to sources.

Tesla's move into India comes as EV demand in its main markets, the USA and China, slows and competition from Chinese producers heats up. Tesla mentioned fewer first-quarter deliveries, lacking analyst projections.

India's EV market is small but developing, with Tata Motors leading the manner. EVs made up barely 2% of overall car income in 2023. The government hopes to attain 30% by 2030.