When Elon Musk – the charismatic chief executive officer of US automotive giant Tesla Inc – made the company’s first announcement ‘affordable‘ car, Tesla Model 3, in 2016, an order page was also opened for India. Indian technology entrepreneurs rushed to place orders. The electric carmaker was expected to launch its India operations soon. After all, Musk had announced Tesla will “consider” building a battery plant in India in 2015.
the car manufacturer had set up shop With an office in Bengaluru in 2021 and even brought some vehicles for testing on Indian roads. However, it soon laid out its plans to sell cars in the country on hold again and again behind the government rejected His plea to reduce import duty. At that time, other car manufacturers had commented Tesla needed to play by the same rules as he did. While a few exclusive imports of Tesla vehicles have come to India, these have been by enthusiastic (and extremely wealthy) owners. Since then, Musk has bought the social media platform Twitter and managed to placate entrepreneur Anupam Mittal, one of the people who placed orders for the Model 3, who was very upset about going for his ‘blue tick’. that he ‘Cancelled‘ his order.
Perhaps shark tank india The judge thought he wouldn’t have seen the car anyway, but he may have acted in haste. recent reuters reports Claims that senior Tesla executives came to India to meet the government, and unlike last time, the company didn’t ask for import duty sop. While it would be rash for anyone to guess what Musk is thinking about India, there are a few points to consider.
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Tesla is not the only market force in the EV segment
Look at the success of fellow American technology giant Apple in India in the last few months. Chief Executive Officer Tim Cook received full Guests are like God He was undergoing treatment a few weeks ago during his visit to India on the occasion of Apple’s 25th Anniversary in India. But it’s important to note that his company’s success isn’t based on sales; The technology firm is shifting more and more of its manufacturing to India and getting more and more of its subcontractors to work here. Now it appears that soon the Tata group will also join in. Production apple tools.
Could Tesla possibly do the same? It remains to be seen, but as a previous column The rise of domestic electric car companies in the Chinese market – something that became apparent at the recent ‘Auto Shanghai’ show – may leave Tesla with no choice but to expand into the world market. third largest Car Market – India. The country’s automobile segment sees record growth with 30 lakh units in 2022-23 sold In the period from April to January. However, this is a tiny fraction compared to China’s 27 million passenger units. car sales in the same year. Many popular models like the Toyota Innova Highcross have a waiting period of over 9-12 months. tesla got it Involved in the price war in the Chinese market by offering its vehicles at attractive ‘discounts’. While demand for Tesla vehicles remains strong in China, new models from BYD and Nio could make things challenging for them.
However, India is a small market for electric passenger cars. Same with Tata Motors recent success March 2023 best month ever for electric car sales in India 8,520 According to the available data, electric cars were sold in India. Tesla alone in the same month sold 76,663 units in China. Incidentally, the sales of electric vehicles have declined significantly in India April 2023 Only for 5,810 units. Furthermore, most EV sales in the country are for smaller vehicles, such as the Tata Tigor and its commercial variant, the XPRESS-T, which is a popular electric taxi in major metropolitan areas. The Tata Nexon EV Max, the most popular EV for private car owners, is priced between Rs 16.5-19.5 lakh. The entry-level Tesla Model 3 costs over Rs 27 lakh in China at current exchange rates. And that’s for models built locally at the company’s massive facility outside Shanghai that can make about a million cars a year.
Tesla, or any other electric car maker, would need scale and size to get a reasonable price. Although Ola Electric is trying hard, India is yet to achieve the scale of electric two-wheelers, which is the fastest growing segment in electric vehicles. Mercedes-Benz India – the first luxury carmaker to begin assembly (via parts and components) of an EV in India with the EQS 580 sedan at Chakan outside Pune – said in a statement that came directly to me that “ICE Any reduction in import duty for (Internal Combustion Engine) or BEV (Battery Electric Vehicle) will give an additional impetus to introduce new technologies and products for Indian consumers. Very clear that any exemption given to Tesla will be applicable to other Brands will also have to pay, and with free-trade agreements (FTAs) with the EU and the UK currently stalled, the chances of a reduction in import duties are slim.
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India lacks affordable EV options
However, one of the reasons why people haven’t started buying electric cars in India in a big way is because they don’t see an alternative that ticks most of the boxes. The MG Comet seems to have divided opinion over its dimensions; A friend from school is treating the Citroen eC3 as a city runabout. But apart from the Hyundai IONIQ 5, which costs close to Rs 50 lakh, there is no real, viable alternative for those seeking performance, range and creature comforts. The sweet spot could be in the Rs 20-25 lakh bracket. If the Maruti-Suzuki EVX – the vehicle they showcased at the Auto Expo this year – brings in that price segment, and if Hyundai, Kia, Mahindra and Tata bring cars at that price point as well, then the segment could finally take off .
But is Tesla worth it? In January 2020, I moved to Seattle, where I stayed with my brother-in-law, Raghav. He picked me up from the airport in his then-brand-new Model 3, and couldn’t stop talking about the car. As I drove it around town later that day, he showed me the car’s ‘piece-de-resistance’ – autonomous driving. And I was taken aback; Does it work. I’m not sure if it will work on Indian roads, but it clearly does in the Pacific Northwest. However, while the interface was very high-tech, I’ve driven other EVs like the BMW i4 and Kia EV6 since then that look great inside and out. And the last two I drove in New Delhi. Personally, I would love it if Tesla came to India, but make no mistake; They are not coming to India generously. They are coming to India because of the market potential.
@kushanmitra is an automotive journalist based in New Delhi. Thoughts are personal.
(Edited by Zoya Bhatti)