Penetrating the Indian automotive industry has been extremely difficult, even for the world’s most valuable automaker – Tesla.
The country’s substantial taxes for vehicle import was the primary issue that blocked automakers like Tesla from selling their cars there.
Finally, Tesla’s current negotiations with the Indian government continue to demonstrate progress as days pass. As reports suggest, India seems to be giving the American automaker a “red carpet welcome” lately. This favor could potentially enable Tesla to avoid strong competition with its closest contender in the local market.
Tesla and BYD’s race in India
Tesla is undoubtedly the leading brand in all-electric vehicles worldwide. However, the situation is different in the world’s largest automaker – China.
Chinese automaker BYD managed to beat Tesla in selling New Energy Vehicles (NEVs). Nonetheless, the Musk-led automaker still dominates in the battery electric vehicle (BEV) segment.
In that sense, the two companies are racing to penetrate the Indian industry to gain a significant advantage.
“The future of who wins in India will have some bearing on who wins globally in the EV race.”
World Economic Forum’s Jasmeet Khurana (via Reuters)
Tesla seems to be more progressive in its plan to penetrate the world’s third-largest automaker. In June, CEO Musk and Prime Minister Narendra Modi had a business meeting in New York regarding the potential India Gigafactory that would apparently manage the production of a $24,000 EV.
Sources familiar with the matter claim that the negotiations progressed over the past week. The American automaker has reportedly detailed its investment proposal to the country. Interestingly, Prime Minister Narendra Modi is also allegedly monitoring the progress of the discussions.
On the other hand, India apparently rejected BYD’s proposal due to national security concerns. As EV-a2z previously reported, the Chinese EV giant originally planned to invest $1 billion to erect a four-wheeler factory.
See Also:
- India turns down BYD’s $1B factory proposal
- Tesla executives met with an Indian investment agency for market entry negotiation
- Tesla to meet India’s commerce minister to discuss factory plan for the $24,000 EV
- Tesla, India already in talks to build a Gigafactory for EVs starting at ₹20 lakh
- Indian Industry Minister invites Tesla to build a Gigafactory, highlighting innovation and technological prowess
All that said, Tesla has a high potential to significantly grow its business in India without its closest rival, BYD. In addition, the speculated mass-market Tesla EV will also undoubtedly aid the Musk-led company in attracting Indian customers, further boosting its sales and delivery figures.
“Tesla has become a desirable product in name alone. Add to that an affordable product tailored for the Indian market, and it has the potential to be a hit locally.”
AutoForecast Solutions, Sam Fiorani
