India, April 17 -- Tesla chief Elon Musk is set to announce an investment in India of $2-3 billion, mainly for building a new factory, when he visits New Delhi next week to meet Prime Minister Narendra Modi, two sources familiar with the discussions said. Musk will meet Modi on Monday during his India trip, when the billionaire is expected to unveil his plans to enter the world's third-largest auto market where electric car adoption is still in its infancy.

India's EV market is small but growing and dominated by local carmaker Tata Motors. EVs made up just 2 per cent of total car sales in 2023, but the government is targeting 30 per cent of new cars to be EVs starting in 2030.

Musk's visit comes as Tesla battles slowing sales in the maj...