HomeBUSINESSTesla faces bumpier ride breaking into India, after success in China

Tesla faces bumpier ride breaking into India, after success in China

Elon Musk all but confirmed that Tesla Inc will enter India last week, which sparked excitement among fans, some of whom have had electric cars for many years. But it may prove that the company’s market is very difficult to break at the moment.

The richest man in the world on January 13 wrote on Twitter “as promised” in response to a report on a Tesla-based blog that the car had been in talks with several Indian states to open an office, exhibition center, research and development center – and possibly a factory.

“It really happened,” said Nikhil Chaudhary, a 20-year-old University of Delhi student who helped start a group of Indian Tesla fans in early 2019, adding that he was “crazy” when he heard the news.

Arun Bhat, 34, a company director in Bangalore, a town formerly known as Bangalore, was similarly happy, saying that he may eventually be able to return to the wheel of the Tesla Model 3 he ordered in 2016.

In all the hype, Tesla’s entry into India is still far from the agreement reached. The company is in talks with state officials but is yet to make a decision on an Indian basis, according to a Tesmanian blog that sparked Musk’s response, which comes after months of unsubstantiated speculation in local media. A Tesla representative in Beijing declined to comment.

TaMo’s Tesla tweet puts the industry in the spotlight

TaMo’s Tesla tweet puts the industry in the spotlight

Although India is Asia’s third-largest economy and home to middle-class migrants, it has not released a host of EVs, unlike its Chinese neighbors, where Tesla started its first factory outside the US and now controls the sale of electric vehicles. .

EVs account for approximately 5% of annual car sales in China, according to Bloomberg New Energy Finance, compared to less than 1% in India. And most market watchers expect China to be stronger than other countries when it comes to EVs in the near future, thanks to kind government support, green car disruptions among the nation’s youth, the number of people moving forward and a strong charging network.

According to the International Energy Agency, about 60% of the slower and faster public places are in China. As Chinese automakers release more competitive EV models and develop a more diverse environment, the country “is on the verge of disrupting the global automotive industry,” UBS Group AG analysts wrote in a report last month.

India has been making movements but not on the same scale.

In 2015, it launched the Faster Adoption and Manufacturing of Hybrid and EV (FAME) program, with a Rs 900 crore ($ 123 million) commitment to inclusive grants from three electric bicycles to buses, according to the IEA. The second generation of the FAME program launched in 2019 was huge, with Rs 10,000 crore to promote EV purchases and build charging infrastructure.

Tesla faces bumpier ride breaking into India, after success in China
Tesla faces bumpier ride breaking into India, after success in China

Tesla Faces Bumpier Ride Breaking Into India After China Success However, the Indian EV market is growing and could cost about $ 206 billion over the next decade, according to a study by the CEEW Center for Energy Finance, which has estimated that more than $ 180 billion in investment will be needed by 2030 to achieve that.

And in a large country like India, a product with a small market share may seem ideal for Tesla, especially if given the company’s strong awareness among rich and environmentally friendly Indians. “Learning about solar and EVs is important,” Chaudhary wrote on the Tesla India fan club website. “We need to educate people about resilience. We need to tell people about the positive impact on their lives. ”

According to Rajeev Singh, partner and car leader in Deloitte India, Tesla is already a well-known brand – “there is a pull in terms of branding” – and half of India’s luxury cars also expect to grow by about 15% more in the next five to seven years, almost double the market. Deloitte forecast.

While it is unclear how much Musk is seriously considering the prospect of one day making cars in India, the government is reportedly trying to attract big names, and Tesla will be the biggest contributor – as was the case with China.

Prime Minister Narendra Modi’s administration plans to spend Rs 1.7 lakh crore on incentives to attract international companies to set up production, people with information on the matter said in September. The nation has had some success which also includes about 20 different tfirms including the Samsung Electronics Co, Hon Hai Precision Industry Co, which is known as the Foxconn, and Wistron Corp promising to establish mobile phone firms.

Teslas, however, may have been introduced, at least initially. Even someone as passionate as Bhat – the director of a Bengaluru-based company that drives the Hyundai Kona EV at the moment – has a sense of challenges.

He also said that Until there is a local meeting place, it will be a product of a niche.

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