Tesla Inc. has been a very essential and the oldest player in the electric mobility space, having revolutionised the space and bought it within reach of the general public. Now the company has officially registered itself in India and is soon to set up its manufacturing facility in Bengaluru as announced by Karnataka CM B. S. Yediyurappa.

Tesla has been the leader in electric cars space and can be majorly accredited for the excitement and rapidly increasing interest in the electric mobility space. We have seen explosive growth in the development of technology and interest of the general public for electric vehicles in recent years, the major reason being environmental concerns and the rapidly depleting fossil fuel reserves.

For those unaware, Tesla is an electric vehicle and clean energy company based in California, USA. The company has been a pioneer in the development of electric vehicles. While other major manufacturers have taken an interest in the space just recently, witnessing a growing demand, Tesla has been developing its technology since 2003. Elon Musk, the CEO of the company has been actively involved in the working of the company and is also one of the major reasons for the hype the company has generated throughout the years.

Why the excitement?

Tesla India Motors And Energy Private Limited is a subsidiary of TeslaInc for its operations in India. CEO Elon Musk confirmed this via Twitter and is soon to start its India operations.

Why is this news exciting you may ask? Isn’t this just another car manufacturer adding to the already competitive space?

No, its not. Looking at the history of the company, and the way it has revolutionised the electric vehicle space, we expect something similar to happen in India. Right now, we require a huge boost in the electric mobility space and for electric vehicles to become a viable option for an average buyer rather than something for the enthusiasts. One major advantage the company has over the other players in India is that its sole focus is electric vehicles and can dedicate all its resources to it, while other manufacturers dedicate a small part of their resources as their major concern are still petrol and diesel-powered vehicles as they make up most of the market demand.

KarnatakaCM, B. S. Yediyurappa has announced that the company will be setting up its manufacturing facility in Bengaluru. This will allow the company to make vehicles at a lower cost and expand its market reach. If Tesla is to follow a similar route for penetration in India as it did in China, we can expect it to first introduce its most affordable model, the Model 3 sedan. 

Though for now the company will be importing its cars via the Completely Built Unit (CBU)route, which is sure to make even its most affordable models out of reach of a good chunk of the market. For reference, the most affordable Tesla vehicle, for now, is the model 3 which starts at around $40,000 for the American market that roughly translates to 30 lakh INR, but, the Model 3 expected to be coming to India in December 2021 (according to carwale) has an expected price of 70 lakh INR which is more than double its cost in the American market. Even considering the government subsidies on the vehicle, the value proposition of the vehicle, which is a very important consideration for a price-sensitive market like India, will be very low.

The two major concerns for Indian buyers while considering an electric vehicle are Range Anxiety and lack of charging infrastructure. Most car owners use their cars for travelling long distances hence a good range and a robust charging network are essential for tipping most car buyers to the other side.

Considering its track record, if Tesla India manages to overcome these hurdles and introduce affordable models specific for the Indian buyer, the company can prove to be a huge success while revolutionizing the space and providing the necessary boost the Indian electric mobility space needs.


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