Elon Musk is likely to reveal Tesla’s plan to establish a manufacturing plant in India, especially since the Centre has made an announcement to lower import taxes on select EVs
Elon Musk’s next visit to India is something that every car enthusiast like me looks forward to. However, his decision to postpone this meeting with Prime Minister Narendra Modi has dampened expectations of some. Still, though, most analysts opine that Tesla’s India-entry is inevitable.
You may also like: Indian Startup CEO Feels His Autonomous Mahindra Bolero is a Tesla-Challenger!
Delay Due to Political Climate
Industry watchers feel that Elon Musk’s decision to defer his visit comes at the back of Lok Sabha elections, which are prone to push the government’s focus from major policy announcements. However, the delay doesn’t translate into any downturn in the carmaker’s interest in entering our car market. The opposition, though, takes an opportunity to jab at the current government. Congress leader Jairam Ramesh commented, “It was odd that @elonmusk was coming all the way to India to meet an outgoing Prime Minister. He too has now read the writing on the wall and decided to put off his visit.”
Meanwhile, Union Finance Minister Nirmala Sitharaman asserts Modi government’s focus on attracting investment from Tesla Inc. “When big companies show interest to come to India, we certainly make sure to make it attractive for them,” she said. “Especially after China started being a concern for many industries or many experts in domain areas, we have made policies in such a way that we are making India an attractive destination, both for manufacturing and services.”
You may also like: RC Bhargava: Maruti WagonR EV Not Launched as it was….
You may also like: Made-in-India Tesla EVs to be Powered by Tata Electronics
Tesla’s India Entry is Inevitable – Analysts
Analysts echo the sentiment that Tesla’s entry into India is inevitable for sustained global growth. Puneet Gupta from S&P Global highlighted India’s significance for Tesla amid global market pressures. Suraj Ghosh, another industry analyst, says,“India is one of the most important and fastest-growing markets, and eventually Tesla has to be here. India is going to be an important manufacturing hub and an important sales point.”
Tesla’s concerns over high import taxes spurred the government to introduce incentives for EV manufacturing. Tesla will likely commence its local operations with low-cost models while exploring market opportunities in India’s luxury car segment. Despite Elon Musk’s postponed visit, the prospect of Tesla’s entry into India has been of significance importance for the industry. The carmaker’s interest in launching local operations indicates a strong belief in India’s potential as a key market for electric vehicles.
