Will Tesla Succeed in India?

Elon musk owned Tesla, a leading electric vehicle manufacturer globally, registered in India and plan to enter the Indian car market in 2021.

Ever since Elon Musk announced his Indian plans on the Twitter handle, debate and discussion over the electric vehicle and whether Tesla will survive in India are doing rounds on social media, news channels, etc.

Before moving into a discussion about how Tesla will, let’s go through the definition of an electric vehicle.

What is an Electric vehicle?

EV or Electric vehicle is a greener alternative to petrol and diesel vehicles. EVs run partially or completely on electricity. It does emit pollutants and keep the environment clean. Electric vehicles need low maintenance so, can go years without much expenditure.

All the major automobile companies, such as Mercedes, Audi, BMW, etc., are experimenting with the EV section and preparing for new launches. For example, Audi launched the Audi e-Tron and marked its entry into EV vehicles with the latest features.

Will Tesla succeed in India?

Tesla has opened its office in Bengaluru and is considering options for setting up a factory. In addition, the Indian Government has announced several incentives, schemes, and stimulus packages to boost EV infrastructure, such as charging stations, showrooms, etc.

But the way to success in the Indian market will not be easy for Mr. Elon Musk. As per Bloomberg India, “EV share in the overall automobile sector in India is less than one percent.”

Challenges for Tesla in India

Ø First and foremost, the challenge for Tesla will be to create a niche market in India, where most cars run on petrol and diesel.

Ø Tesla cars are comparatively costlier than the majority of car brands in India. So to tap the huge car riding class that looks for an affordable price range, Tesla has to revise its prices.

Ø Tesla Model S, Tesla 3, and Tesla X launch soon with a price range starting from 60 lakhs INR.

Ø Indian Government initiated Faster Adoption and Manufacturing of Hybrid and EV (FAME) to improve the ecosystem of electric vehicles and construct charging points across India. In more efforts, GDP rates decreased to five percent. Despite all these efforts, people in India are adopting electric vehicles very slow.

Ø Tesla will have to employ innovative marketing methods to capture the attention of modern, argumentative Indians who would not buy only because it is the world’s renowned brand. We need the value of our money, and Tesla has to prove it.

Ø But as of now, Tesla does not do any marketing except the Twitter handle of Mr. Elon Musk himself. So, we are curious to see how Tesla will make their entry into one of the world’s biggest markets.

Indian Situation

If Tesla is targeting only the creamy layer of society, their price range is okay. Those 1 or 2 percent ultra-rich Indians can afford the price range. But if Tesla wants to target a larger mass, then they have to plan accordingly.

For a majority of Indians, luxury comes second to affordability and efficiency. Our roads have improved a lot, but more than sixty percent of the population resides in village areas.

Tesla can be successful if they target diversity and plan specifically. ‘One Size fits all formula’ would not work in India.