जनभावना टाइम्स ਇੰਡੀਆ ਡੇਲੀ ਪੰਜਾਬੀ इंडिया डेली लाइव

Tesla to cost just Rs 17 lakh in India? Not really... Know condition to Govt, challenges ahead...

Tesla in India: One must remember the history of US automobile companies and the heavy taxes in India. Feeling nostalgic about General Motors and Ford?

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Prateek Gautam
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Tesla in India
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Tesla in India: The buzz around Tesla's entry into the Indian market has reached a crescendo. Recent reports suggest that the American electric car giant is on the verge of making its Indian debut, with plans to set up a production unit within 24 months of its official entry.

While no official statement has been released, all eyes are on the Vibrant Gujarat Summit, slated for the coming year, where a significant announcement might take place.

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Tesla in India: Localisation to New Heights

Tesla's potential entry into India could redefine the concept of localisation in the automotive industry. Rumours indicate that the first made-in-India Tesla could be priced at an astonishingly competitive Rs 17 lakh. To put this into perspective, the top-spec trims of the Mahindra Scorpio-N - Z8L, currently priced at Rs 20.02 lakh (ex-showroom), face tough competition.

Tesla in India: The Billion-Dollar Investment

Elon Musk's brainchild is ready to invest big in India. The Economic Times reports that Tesla is eyeing an investment of up to $2 billion for establishing its manufacturing facility in the country, contingent on certain conditions. The proposal submitted to the central government outlines the investment scale based on the number of vehicles, raising questions about the terms and conditions set by Tesla.

Investment Proposal Breakdown

According to the ET report, Tesla's investment is tied to concessional rates for vehicle production. For an allocation of 12,000 vehicles, the investment could be $500 million, escalating to the full $2 billion if the concession is extended to 30,000 vehicles. However, the catch lies in the demand for a 15 per cent concessional duty on imported vehicles in the first two years post-establishment.

Tesla in India: Import Duty Challenges

The central government might have its own set of conditions, possibly insisting on a 20 per cent concessional tariff on the initial 10,000 Tesla vehicles for the first two years. This adds complexity to the negotiation table as India currently imposes a 100 per cent import duty on cars valued above $40,000. Vehicles priced below this threshold face a 70 per cent import duty.

Localisation Strategy

Reports suggest that Tesla plans to achieve 20 per cent localisation of its made-in-India cars in the initial two years, with an ambitious target of 40 per cent within four years. This strategic move aligns with Tesla's global approach of adapting to local markets while maintaining the high standards of its brand.

Tesla in India: Model Lineup and Pricing

Tesla's entry into the Indian market is expected to include three models: Model 3, Model Y, and a new hatchback. The rumoured pricing for the Model 3 and Model Y stands at Rs 38 lakh and Rs 43 lakh, respectively.

The hatchback, positioned as an affordable offering, could potentially disrupt the market with an expected price of $20,000, translating to around Rs 17 lakh. However, one must remember the history of US automobile companies and the heavy taxes in India. Feeling nostalgic about General Motors and Ford?

Tesla in India
Tesla in India Flickr/Marco Verch Professional Photographer

Tesla in India: The Venue Dilemma

Choosing the right location for its factory is a crucial decision for Tesla. Gujarat, Maharashtra, and Tamil Nadu are the front runners due to their established ecosystems for electric vehicles and export capabilities. The final decision is anticipated to be unveiled at the Vibrant Gujarat Global Summit in January.

Challenges on the Horizon

While the prospects of Tesla's entry into India seem promising, challenges loom on the horizon. Elon Musk's recent claims about Tesla electric cars performing well in cold weather might not align with India's tropical climate. The country poses challenges related to charging infrastructure, battery life, and budget constraints, particularly in regions where temperatures can exceed 40 degrees during summer.

Adapting to Indian Climate

The scorching Indian heat can potentially affect the performance of electric cars, with reduced charging efficiency and range. Tesla will need to tailor its batteries to withstand the rigours of the Indian climate, presenting an engineering challenge that could determine the success of its venture.

Building a Robust Charging Network

Tesla's success in India hinges on its ability to establish a robust charging network. The current scarcity of charging stations for electric vehicles in India requires strategic partnerships with local companies to develop an extensive network. Overcoming this hurdle is crucial for Tesla to gain a competitive edge in the Indian market.

The Success Formula for Tesla in India

For Tesla to flourish in the Indian market, attention to four key factors is imperative:

  1. Affordable Pricing: Offering competitive prices that resonate with the Indian consumer.
  2. Climate-Adapted Batteries: Customizing car batteries to thrive in the hot Indian weather.
  3. Charging Network Expansion: Developing a widespread network of charging stations in collaboration with local partners.
  4. Effective Marketing Campaigns: Running impactful sales and marketing campaigns to promote Tesla cars in India.

Finalising the Deal

The much-anticipated deal between Tesla and India is expected to reach its conclusion soon. Union Minister Piyush Goyal's recent visit to Tesla's factory adds weight to the speculation. The success of Tesla's electric cars in India ultimately rests on its ability to address the unique challenges posed by the Indian market.

Tesla in India: Conclusion

As Tesla inches closer to making a significant impact on the Indian automotive landscape, the company must tread carefully to overcome the challenges unique to the subcontinent. If Tesla can navigate the intricacies of the Indian market and fulfil the expectations set by both parties, the electric car giant could pave the way for a new era of sustainable and high-performance vehicles in India.

FAQs

Q. When will Tesla officially announce its entry into the Indian market?
The official announcement is anticipated at the Vibrant Gujarat Global Summit in January.

Q. What are the expected prices of Tesla's Model 3 and Model Y in India?
The rumoured prices are Rs 38 lakh for Model 3 and Rs 43 lakh for Model Y.

Q. What conditions has Tesla set for its investment in India?
Tesla seeks concessional rates and a 15 per cent duty concession for the first two years.

Q. How does Tesla plan to address the challenges posed by India's hot climate?
Tesla aims to adapt its car batteries to withstand high temperatures and ensure optimal performance.

Q. What are the key success factors for Tesla in the Indian market?
The success formula includes affordable pricing, climate-adapted batteries, a robust charging network, and effective marketing campaigns.

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