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What are the chances of Tesla motors to capture electric automobile market in India?

Tesla motors to capture electric automobile market in India

Tesla is an American electric vehicle and clean energy company based in Palo Alto, California. Indian consumers have always demanded of getting a vehicle that is very much efficient and easy to use. But India lacks the infrastructure for EVs, such as charging points and high-quality roads. Because of EVs high costs and lack of support, their ownership is low in India. India won't be shifting gears to electric vehicles (EVS) anytime soon. Only 6% of automobiles sold in the country by 2030 will be electric, according to the new global EV. One of the most important reasons is that the financial system is not mature in India. 

But, once this company comes into India it will totally bring a great revolution in the world of automobiles. In its drive towards EVs, India is planning to build large factories to make lithium-ion batteries, which the company mostly imports currently. Having to import the batteries drives up the costs of EVs. The vehicles' high ownership costs are a significant hurdle in boosting their adoption in India. India's focus on next-gen mobility has definitely taken on legs under the current government. In the financial year that ended in March, about 3.4 million passenger cars were sold in the country against

21.2 million two-wheelers, according to data released by Indian automobile manufacturers. The number of three-wheelers sold totalled 0.7 million. The new proposal is to have only electric three-wheelers operating in the country by 2023, and only electric two-wheelers by 2025. The government seems to have two dominant objectives - to control pollution and take the lead in an emerging industry. 

In the Indian context, automobile manufacturers have announced electric four-wheelers. But many more will be needed if India is to take meaningful steps towards becoming an EV-first nation. In the last few years, trends suggest a rise in interest among the common masses for electric cars I comparison to electric two-wheelers. But it will be a challenge to create a competitive advantage in electric vehicle manufacturing, or even a market for them, given that India does not have the infrastructure or deep pockets that the world's current leader in electric mobility, China, has. India can perhaps learn a few lessons from China. The authorities there spurred sales partly by placing caps on the number of conventional combustion vehicles that can be sold in its most congested and polluted cities. Beijing has also limited the number of electric vehicles that can be sold.

Further, car manufacturers now have to ensure that a specified share of their production is of so-called zero-emission vehicles. The government is also planning to offer incentives for manufacturing electric vehicles and batteries to boost economic growth and encourage local manufacturing under its Make in India initiative. But though electric cars gained a lot of popularity, there are a number of challenges in the adoption of electric vehicle cars in India in the near future. These include:

  • Charging Infrastructure

Tesla motors to capture electric automobile market in India

  • Battery performance

Tesla motors to capture electric automobile market in India

  • Supply-demand gap

Tesla motors to capture electric automobile market in India

  • Creating the closed-loop

Tesla motors to capture electric automobile market in India


Taking all these things into account, if a company like Tesla comes into India and if it increases the economy then there is a high chance of tesla motors to capture the electric automobile market in India. If Tesla manages to build the same infrastructure like the one it has in the western market's managing the four major points above, it won't take much time for Tesla to spread its roots across the Indian market.

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