WHY TESLA NOT ENTERING INDIA?


Tesla Cars


Tesla is an American Car Manufacturer. Tesla focuses on clean energy vehicles like Electric Vehicles, Solar-Powered Vehicles etc. Tesla is a California based company with headquarters at Palo Alto (not the Car). Tesla operates multiple production and assembly plants, such as at California, Shanghai, New York etc.


Don't you think that Tesla should enter India where pollution is a big issue? Also, India is more focusing on Electric Vehicles. Tesla's vehicles not only saves the fuel but also are great in performance as well. Tesla's EV is not like the one we see in the Indian Market.


As of 2020, Tesla has 4 cars in its lineup. Model S and Model 3 are Sedans while Model X and Model Y are SUVs. Also, Tesla has recently unveiled vehicles like Cybertruck, Roadster and Tesla Semi.



Tesla Mode 3


Tesla CEO Musk said "import duties in India are extremely high and the higher duties would make Tesla cars unaffordable"


Here are the 5 Reasons why Tesla is not entering India.


Brand Image:


Sure Tesla is cool and high-tech. Is it an established brand? Many would have different answers when Mercedes-Benz, BMW, Audi, Jaguar, Volvo play in parallel. They have better and proven engineering that goes in per car. The only difference is fuel. There’s a large consumer base in India who trust a badge, possibly still cheaper than a Tesla Model 3.


Initial Costs:


An EV is expensive to deal with. A Mahindra e20 costs nearly 7 L, with a range of hardly 70–80km per charge, which is good for the daily commute. A Tesla, on the other hand, starts at $40k for Model 3. Consider imports and everything and you will have to pay ~60–70Lacs for a Model 3, considering the current import duty scene. The government has not offered any subsidy model for usage of EVs.



Tesla Model X


Running Costs:


Tesla runs 200 Miles (325 KM) at a single charge from a 60KWh Battery. For charging a 60KWh Battery one would need approx 300 units which will roughly cost 3K (as considering 10Rs per Unit). A regular luxury vehicle running on gasoline would take 30 Liters of fuel for the same distance which costs roughly Rs. 2300. If you drive on diesel, that comes out to be less than Rs. 2000. I guess this is not going to attract the Indian mindset which majorly concentrates on efficiency. Also, there is less possibility that Tesla will deliver the claimed efficiency as considering the Indian Traffic Scenario.



Tesla Model Y


Infrastructure:


At the moment the Indian Government has questionable claims of surplus electricity available without any plans of putting it to work. When people start using EVs, the demand will surge and it's doubtful that grids will be able to handle it. A company like Tesla knows these facts since they offer superchargers on highways. Unavailability of electricity is a big problem for EVs since there’s nothing else that can drive it.



Tesla Model S Interior


Sales and Services:


Tesla’s model of having no franchises is a big blow to what India currently implements. Would the company be able to handle and satisfy customers? I guess given proper resources, that is possible.


Considering these points we can't expect Tesla to enter Indian now. Maybe, the chances of Tesla to enter India arise after 5-10 Years when the Government will focus on the Infrastructure to run EVs on higher numbers. Also, import duties play a major role. Tesla can successfully enter India only if the Import duties on EVs drop.



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