Recently Elon Musk ( C.E.O. of Tesla Motors ) met P.M. Modi at Tesla’s headquarters in California, U.S. Musk has also announced that the company will be launching their first Tesla in India in 2021. What competitions would Tesla face after stepping into Indian markets? As one the biggest Indian automakers Tata Motors already trying to build an EV ecosystem in India it has been a big question in people’s mind that would Tesla affect Tata’s sales?
Recently a Twitter handle named “Tesla Club India” which tweeted “Hey Elon, just thought we’d put this out here. We wait and hang on to hope wrt “hopefully soon” for India Tesla entry. Would love to hear of any progress in this regard.” and posted a picture of t-shirts on which “India wants Tesla” was written to which Musk replied “next year for sure” by retweeting the post.
The C.E.O. of Tata motors Guenter Butschek recently spoke about Tesla coming to India. He says that Tata Motors is not worried about Tesla coming into the Indian EV market, they may build their own customer base here but Tata is ready with their own EV plan. Butschek clearly expressed that they are neither competing with Tesla nor copying it. At present Tata is already focused on Tigor EV and Nexon EV and will begin their EV segment with the introduction of these two EVs.
Even Elon Musk spoke about how Tesla is planning to build its ways to the Indian automobile market. Musk tweeted “I am told duties are extremely high in India (up to 100%) even for electric cars. This would make our cars unaffordable.” This simply conveys that Tesla would be facing difficulties on the sales platform if they import their cars and sell here. Manufacturing of Tesla cars in India would be more favourable to their sales to escape from import duties. Analysts have stated that EV policies of India promotes “Make in India” projects and are made keeping them in mind, which encourages to manufacture goods in India rather than importing them from outside. Musk also said that GST policies for the EVs manufactured in India have been revised but there are no special changes offered to the EVs that will be imported to India and have to go through the same duty charges.
Apart from talking about Tesla and Tata, Guenter Butschek also talked about how electric vehicles are important and why we need to spread awareness about it.