Tesla Motors makes way into the EV Market in India
The entry of Tesla Motors into India’s EV market has been welcomed by MG Motor India. India’s electric vehicle sector lacks competition, but the entry of Tesla and other international automakers will level the playing field. The Indian government aims to achieve 30% EV sales by 2030, but this goal may be difficult to achieve without more government policies attracting foreign automakers.
Tesla CEO Elon Musk postponed a scheduled trip to India this week where he was to meet Prime Minister Narendra Modi, citing “heavy Tesla obligations.”
India has announced that import tariffs on certain EVs will be cut to 15% if the carmakers meet certain requirements. Domestic carmakers such as Tata Motors, Mahindra and Mahindra, as well as Maruti Suzuki, have reportedly expressed concerns about the new policy.
Tesla CEO Elon Musk has previously said he was “incredibly excited about the future of India,” adding it has “more promise than any large country in the world.” However, investments into India may not be Tesla’s priority right now.
Tesla has also already started looking for showroom space in New Delhi and Mumbai, according to Reuters. The Indian Prime Minister Narendra Modi earlier met with Elon Musk in the U.S. on June 20, 2023.
EV demand in India could remain weak as confidence to switch to EVs is curtailed by insufficient charging infrastructure.
