What Tesla’s entry means for the Indian Market
Tesla, the world’s most valued automobile corporation, has finally decided to enter the Indian market, according to an ETAuto report. Elon Musk has long set sight on India but hasn’t been able to bring Tesla here due to exorbitant import duty taxes and non-existent EV support infrastructure.
The bookings are believed to resume in January itself and the deliveries will start by end of first quarter 2021-22. While it’s certainly exciting, the thing to note here is that Tesla model 3, the one that is being launched, will be priced at 55-60 lakhs, thanks to high import duty taxes and it being imported as a completely build unit. So what do we gain from a brand entering the market with one car which only higher end customers will be able to afford and which is not exactly made for Indian road conditions.
Here are a few reasons why this could be the start of something big:
Entry of Tesla will encourage other major car manufacturers to enter Indian market and setup their own production units here. All automobile corporations know car market is getting saturated in most of the developed world while India is still in the nascent stages of not just EV, but car adoption. Couple that with India’s huge population and you see a massive untapped market with at least tens of millions of potential customers (even more maybe). All of this means investments in India and a boost for local manufacturing, along with better quality products for Indian customers.
Coming to the EV environment in India, we have a long way to go. EV car adoption is negligible and charging infrastructure is poor. The Government has been trying to change the state of affairs with incentives for EV manufacturing but things have not picked up as yet. There are a few bright spots though. Ather electrical scooters have been doing well. NITI Aayog has been in talks with ministries to setup massive factories to manufacture lithium-ion batteries. Tesla itself is planning to set up an R&D facility in India.
All of which means that while the launch of a 55 lakh Tesla car might not be of much consequence to an average consumer, the entry of a global EV giant in India bodes well for the EV landscape in the country, the car market and Indian economy at large.
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