"What's taking so long for Tesla to enter the Indian market?"
Tesla after expanding its mart over various countries like US, Germany, China, etc., considering setting its foot in India, which evidently does have a huge market, not to forget that India inhibits this gigantic scope inside the EV (Electronic Vehicle) market pro-expansion, then why not! It’s been almost 3 years Tesla sought a fitted settlement. Despite the umpteenth opportunity, what’s taking it so long for Tesla to enter the IM (Indian Market)?
Tesla Motors is a company dealing
only in EVs. And no wonder IM has picked up the interest of Elon Musk, CEO of
Tesla motors; the headmost reason being there exist a lubricant market as there
are only a few companies manufacturing EVs in India, and the increasing fuel
prices are doing a great job creating exuberant demand for the same.
Then despite the opportunities that
are lying ahead in front of Tesla, what are the exact barriers that are holding
them back? Well, the very first thing is the price of its products itself;
starting with the range of $45,000-$55,000 (Rs. 34-42 Lakh approx.) which is quite
too much. Another hurdle is that Tesla initially considered just exporting the
manufactured products to take the gauge of the expected demand that would it be
sound to implant the entire factory? If this option is preferred over then they
have to pay almost 60% as import tax and above all, if the price exceeds $
40,000, the import tax liability will be 100% of the price, almost making their
products unreachable to the commons.
The clash (Tesla’s interest & India’s reality)
When it comes to the prices, the
commons are too conscious here. The starting range of the EVs in India of the
companies like Tata Motors and Mahindra & Mahindra does ranges starting
from Rs. 12.5-15 Lakh. When we look at the average income of individuals it’s
$1927.708 (U.S.) only, which is just 2% as compared to China and US in the
FY2020.
Moreover, the demand for 2-wheelers is higher as compared to the four-wheelers (small and mid-sized cars) viz 80.8% and 12.9% of the overall market share as per the data provided by the IBEF (India Brand Equity Foundation) in its Indian Automobile Industry Report (Nov. 2021).
Conclusion
Tesla in order to capture the Indian
market must consider the measures regards, like the purchasing behavior and the
capacity of the commons, the needs as per the current scenarios. Tesla does
have this potential to lay the market by the heels; all they just need to do is
to come up with what they (the Indians) are looking for and upturn the same as
full of opportunities.
What do you think? Will Tesla be
able to get what they came up for?
References:
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