Tesla has finally decided on officially penetrating into the Indian market. Will the company once again replicate its monumental success from China in India, the second most populated country in the world?
Tesla created new records in both sales and share prices amidst the contrarian growth of electric vehicles in 2020, and has now finalized on the deployment in the Indian market that has been rumored for a very long time.
Nitin Gadkari, Minister of Road Transport and Highways, disclosed during an interview this week that Tesla may establish a branch office in India during the first half of 2021, before initiating the business of sales. “Tesla may also seek for a suitable location for setting up factories in India, including potential localization in production and assembly, though the premise is the well response from the market”, commented Gadkari.
The only official information channel for Tesla comes from the Twitter page of its CEO Elon Musk as the company has yet to establish a public relations department, and Musk had mentioned in one of his tweets that Tesla will not enter India in January, but that it will surely happen within 2021.
No, but definitely this year
— Elon Musk (@elonmusk) December 27, 2020
The model that will debut in India is most likely to be Model 3 manufactured in China, and is expected to launch in June 2021 under a conservative estimation. India has increased the import tariffs due to the exacerbating tension between the country and China in recent years, and the lowest price of Model 3 is anticipated to be around NTD$2 million when it becomes available in India.
The electric vehicle market of India is still at its preliminary phase, though the Indian government is relatively prepared in terms of the relevant subsidization and budget programs that comprise of the assembly of electric vehicles, construction of charging stations, and the sales of electric vehicles, making it an optimal opportunity for Tesla’s entry.
However, Tesla must also compete with local manufacturers, including major competitors TaTa Motor and Mahindra, where the flagship electric SUV Nexon of the latter emphasizes on a long-term rental price of NTD$10K per month. The final price of Model 3 at NTD$2 million, should it come true, would mean 16 years lease of Nexon, which imposes additional incentives for buyers in electric vehicles that are expeditiously innovating.
Undoubtedly, it is not entirely impossible for Tesla to set up factories in India, if the longer driving range, advanced autonomous driving system, and the power that is on par with sports vehicles receive well market responses, which may facilitate a rise in prices then.
(Cover photo source: Tesla)