Tesla In India: What’s Going To Happen With Tesla’s Indian Escapade

Tesla is coming to India. Yes, you read that right.

According to a statement given by Minister of Road Transport & Highways, Mr Nitin Gadkari, the American electric carmaker is coming to India.

The minister confirmed the news recently and since then, the Indian automotive corridors are filled with all sorts of news regarding the same.

Tesla’s India entry has been something that’s done the rounds quite a few times up till now. Tesla founder & CEO has often expressed his interest in setting up shop in the country, however, hasn’t been successful.

So, since now Tesla’s entry is finally confirmed, we thought of examining how’s it going to be. What are certain situations that the car is going to face in India? What’s going to be a useful feature and what’s going to be just a fad?

Moreover, most importantly, if the carmaker will be able to make a mark in the tough and hard to penetrate, Indian automotive market?

So here’s a list of situations that we have created keeping in mind all the major factors that have the ability to impact Tesla’s Indian stint.

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1. High Import Duties
   

   

   The first and the most probable hurdle in Tesla’s India journey would be the import duties for sure. While we’re pretty sure the people in Tesla would already have thought about it but there hasn’t been news on the same.

   The Indian auto market has some of the highest interest rates in the world. Taxes can reach up to 50 % in the country. Although there are subsidies for electric vehicles in some cities, it might not be enough to make people prefer it over other vehicles.

2. Tesla? Not sure.
   

   

   Again, something that might be taken care of by the Tesla executives. However, Tesla will have to actually do a lot of modifications to master the Indian market like a pro. Aggressive pricing, a thorough positioning and loads of incentives.

   While there’s a cult for Tesla in the country, there’s still an older generation that hardly cares about the same. So, will Tesla be able to tempt them? What’d you prefer? A Nexon EV at less than half the price from a reputable Indian brand or a Tesla?

   Obvious? You’re the one who’s got to answer that.

3. Infrastructural Hindrances
   

   

   According to some estimates, the Indian EV market is expected to grow to ₹50,000 crores by 2025. It makes all the more sense for Tesla to take the first-mover advantage.

   Certain steps are being taken to fill the infrastructural gap, but the speed might not be able to match with Tesla’s India story. Currently, there are 500 charging stations around the country, with the need of around 2,600 as of now.

   Several steps are being taken regarding the same, although, it will surely be a challenge to match the pace with the ever-changing EV technology.

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4. Autopilot: Error 404
   

   

   Autopilot is one of the most popular USPs of Tesla. The car is equipped with a system of advanced driver assistance systems (ADAS) that makes the car autonomous, however with active supervision by the driver.

   Considering the Indian road conditions and driving practices, the autopilot is bound to fail at times. While change might come but it is rather slow.

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5. Electric over Fossil Fuels?
   

   

   The Indian market is a paradox in itself. While it is quite easy to understand, it isn’t so simple to master.

   At $25,000 Tesla might not expect much fanfare and demand for it’s about to launch Model 3 in the country. The Indian consumers have just been opened to the idea of an electric vehicle.

   Persuading the money-minded and benefit-oriented Indian consumer might just be one of the toughest jobs for Tesla in India.

Hope’s Always There | Tesla in India

Not everything is on the negative side of things. While India gets ready to welcome Tesla in their country, there are certain advancements that have taken place.

The GST on electric cars has been reduced from 12 per cent to 5 per cent. Moreover, under the FAME ( Faster Adoption and Manufacturing of Hybrid & Electric Vehicles), the government has decided to allot ₹11,000 crores over a period of three years to boost local manufacturing of EVs in the country and to set up charging stations in the country.

So, with a combination of some good and a little bad, Tesla is coming to India. Whatever happens, one thing is for sure, it’s going to be exciting.

Also read: What Crucial Modifications Should Tesla Do Before Entering India?