Tesla Set to Announce India Entry as Ola Cabs Explores IPO and Wipro Reveals Turnaround Plan

Tesla, the world's leading electric vehicle manufacturer, is expected to announce its entry into the Indian market on April 22, 2024, following a meeting between CEO Elon Musk and Prime Minister Narendra Modi. Musk is scheduled to visit India over the weekend and is likely to discuss plans for a $2-3 billion investment in a car manufacturing facility in the country. "The visit is likely to include discussions on making social media platforms, such as X (Twitter), safer and more responsible for social issues, as well as addressing the problem of deep fake videos and content," according to sources familiar with the matter.

The Indian government has rolled out a policy that allows Tesla to import 8,000 electric cars annually at a reduced 15% duty, with the expectation that the company will meet the 50% domestic value-addition requirement within three years. The government is optimistic about this target, as India's component ecosystem for electric vehicles is stronger than that for mobile phones. Tesla is already procuring components worth $1.5 billion to $2 billion annually from India.

Meanwhile, Ola Cabs, the SoftBank-backed ride-hailing giant, is planning an initial public offering (IPO) to raise $500 million at a company valuation of about $5 billion. The company aims to file papers for approval with India's market regulator within the next three months and is in talks with investment banks, including Goldman Sachs, Bank of America, Citi, Kotak, and Axis, to appoint IPO advisers within a month. This marks Ola's second attempt at an IPO, following a scrapped plan in 2021 to raise up to $1 billion.

In other news, Wipro, one of India's leading IT services companies, reported an 8% year-on-year fall in consolidated net profit for the January-March quarter of FY2023-24 at ₹2,835 crore, primarily due to a challenging macro-environment. However, the company beat analysts' estimates in both profit and revenue. Wipro's new CEO, Thierry Delaporte, has revealed a five-point turnaround plan to address the company's performance issues and drive growth in the coming years.

Why this matters: Tesla's entry into the Indian market is anticipated to boost the country's electric vehicle adoption and support the government's goal of having 30% of all private car sales be electric by 2030. The move also aligns with Prime Minister Modi's efforts to make India a global manufacturing hub, particularly for electric vehicles. Ola Cabs' IPO plans and Wipro's turnaround strategy are significant developments in the Indian business landscape, with potential implications for investors and the broader economy.

As India continues to attract global companies and foster homegrown businesses, the coming months will be crucial in determining the success of these ventures. Tesla's manufacturing plans, Ola Cabs' IPO, and Wipro's turnaround efforts will be closely watched by industry experts and investors alike. The Indian government's support for electric vehicle adoption and domestic

Key Takeaways

• Tesla to announce India entry on April 22, 2024, with $2-3B investment plan.
• India offers Tesla 15% duty on 8,000 EV imports, expects 50% local value-addition.
• Ola Cabs plans $500M IPO at $5B valuation, second attempt after 2021 scrapped plan.
• Wipro reports 8% YoY drop in Q4 profit, new CEO unveils 5-point turnaround plan.
• Tesla's entry, Ola's IPO, and Wipro's strategy reflect India's evolving business landscape.