Recent sightings of Tesla’s Model 3 and Model Y vehicles being benchmarked in India have sparked renewed hope for the automaker’s entry into the country’s burgeoning market. While discussions between CEO Elon Musk and Prime Minister Narendra Modi have been ongoing since their first meeting in 2016, significant strides have been made this year. However, as the possibility of Tesla’s foray into India looms large, there are reservations that warrant consideration.
The Long Road to India
For years, Tesl a and India engaged in talks, seeking to solidify a deal that would bring the electric vehicle (EV) giant to the subcontinent. Prime Minister Modi’s visit to Tesl a’s Fremont Factory in 2016 marked the beginning of a series of discussions with Musk and other key Tesl a figures. These talks gained momentum in mid-June 2021 when several Model 3 units were brought to India for testing and subsequent approval from the Automotive Research Association of India (ARAI).
Hurdles and Hesitations
Despite successful testing, challenges remain. The pivotal point of contention revolves around import duties. It has pushed for a reduction, citing the potential to double the price of their vehicles. This demand has met resistance, as India places a premium on domestic manufacturing through its ‘Made in India‘ campaign, an initiative vital for bolstering the local economy.
A Glimpse into the Future
Anticipation for Tesla’s entry into India is palpable. Talks of establishing a factory to produce an affordable $24,000 mass-market EV have surfaced, further underscoring the seriousness of these discussions. Elon Musk himself expressed confidence in Tesla’s presence in India, though no concrete timeline has been confirmed.
The Competition Gears Up
As Tesl a inches closer to Indian shores, existing automakers are gearing up for the impending competition. Mahindra Group CEO, Anish Shah, expressed confidence in Mahindra’s stronghold in the SUV market, suggesting that Tesl a’s entry would not disrupt their standing.
What Lies Ahead
If the partnership between India and Tesl a materializes, it could open a new frontier of potential sales for the automaker. Analysts at Baird have even recommended Tesl a in their “Best Ideas” list, citing the potential benefits of this strategic move. Tesla’s establishment of office space in India further solidifies the notion that market entry is on the horizon.
SOURCE : TESLARATI
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FAQs
When did discussions between Tesla and India begin?
Discussions between Tesl a and India commenced after CEO Elon Musk’s meeting with Prime Minister Narendra Modi in 2016.
Is there a confirmed timeline for Tesla’s entry into the Indian market?
As of now, no concrete timeline has been confirmed. While Elon Musk has expressed confidence in Tesla’s presence in India, specific dates remain uncertain.
What recommendations have analysts provided regarding Tesla’s entry into India?
Analysts at Baird have recommended Tesl a in their “Best Ideas” list, highlighting the potential benefits of this strategic move for the automaker.