Tesla has a high potential to succeed in the Indian market, with experts projecting $3.6 billion in revenues by the end of the decade.
Tesla’s growth prospect in India
India could serve as a key market for the American electric vehicle giant in the near future. The country can potentially enable Tesla to earn at least $3.6 billion in revenue by 2030, HT Auto reports, citing Counterpoint Research Senior Analyst Soumen Mandal’s remarks on Thursday.
“India could grow into a considerable market for Tesla in the long term. As cars effectively become supercomputers on wheels, we anticipate Tesla could achieve $3.6 billion in revenue from car sales in India alone by 2030.”
Counterpoint Research Senior Analyst Soumen Mandal
Elon Musk to meet PM Modi
The industry experts’ optimistic forecast of the potential business growth of Tesla in the local market came after Chief Executive Elon Musk confirmed plans to visit the country to meet Minister Narendra Modi later this month.
The Tesla boss and the Indian Prime Minister are also expected to announce key details on the American electric automaker’s potential investments in the local industry. Announcements may also include possible duty cuts the government may offer Tesla for its import models. Moreover, Tesla may also disclose its preferred sales/distribution model in the Indian market, among others.
“The list of possible announcements includes India providing duty cuts on imported Tesla cars, the company establishing an official sales and service presence in the country, followed by possible manufacturing facilities further out.”
Counterpoint Research Senior Analyst Soumen Mandal
Tesla’s imminent visit to India brought excitement to millions of Tesla fans in the country. It reflects Prime Minister Modi’s successful initiatives to court the Musk-led company to invest in the local electric vehicle industry with a new production plant.
India’s EV industry
India’s electric vehicle penetration rate currently stands at only 2.3%, led by homegrown automaker Tata Motors. This minimal rate is expected to increase to 28% by 2023, according to the report.
The industry also projects electric cars worth about $25,000 to claim at least 15% of the market by 2030.
India is also apparently on track to advance as a production hub for sub-$25,000 cars, posing export prospects to currently developing and still underdeveloped countries.
Tesla’s significant priority in building its Supercharging network in the country could also accelerate the country’s charging infrastructure expansion similar to the standardization in the US owing to North American Charging Standard (NACS) uptake.
Counterpoint Research Associate Director Liz Lee, also projects a substantial growth in India’s electric vehicle landscape. Government efforts will play a significant role in the local EV industry’s expansion, including the production-linked incentive (PLI) program for Advanced Chemistry Cells (ACC) and the recently announced import duty cuts to 15% on sub-$35,000 EVs.
India expects its car sales to witness a compound annual growth rate (CAGR) of 6.3% from 2024 to 2030, indicating a notable increase from 4.4 million unit sales in 2023. As for EVs, the government expects a CAGR of 52% in the same period. It would not be surprising if India actually achieves these targets, considering the imminent arrival of the Musk-led company.
