Tesla is the leading automotive company in the World at the moment. Its meteoric rise is unparalleled. Striking chords with advancing technology and consumer interest, the company sure knows how to choose their options. The automotive company has flourished in the United States and is the most popular vehicle over there. It is observed that many Americans own a tesla for its modernistic features and consumer range prices that make it affordable to the regular elite consumer. Thus, their vehicles are electric and, therefore, impact the growing global warming crisis and impact earthly resources that are now on the verge of exhaustion.
The company also ranges its force to London, Australia, China, Taiwan, and more such places. Elon Musk, the company’s brain, had more extraordinary visions to implement with Tesla for the World. He wanted to capture the Indian market, a market that was so fanciful with consumers who had deep interests and passion for owning a Tesla. Even though India’s setting wouldn’t be such a big deal, the Ministry had planned to bring out electric motors by 2030. The Government is very much interested in the prospect of bringing Tesla to India, as it would also boost their revenue and economy for some time.
The call to enter India couldn’t have come at a better time as well. The initiator to redevelop the sector after the pandemic is widely processed among researchers, and the need for something enticing products into the market is the need of the hour. The needed modalities that are to be set in place are the main focus of Tesla. The ability to create a market compatible with consumers who have an interest according to Indian specs is also another thought at Tesla’s minds. The Indian market is a unique and bizarre environment, and the battle with Tesla’s entry will only be immense.
Transition to the Indian Market
Tesla’s Transition into India isn’t going to easy and is only going to get murkier. The industry is so saturated that the entry of such a company with enthralled users is sure to be envied by the following manufacturers. Significant companies like- Maruti Suzuki, Tata Motors, and many more will have to counter attack their market. Before that, they set up shop in India to deal with quick assessment and try to invest much money that could prove for the better or worse. The Indian Government has been placing regulations that have been very challenging for Tesla.
For example, the regulations to Gigastations must be accomplished at first. Gigastations are charging stations for electric vehicles just like the usual Vehicles require Petrol or diesel to function correctly. These Gigastations have to be placed everywhere, and the investment on these too high. Hiring Franchises and people to come in to set up these stations will be necessary. And, these stations will be of great importance in the Future depending on the usage. As promised, the conversion from fuel to electricity is a step that the Government has to take. These stations are also priced if set up.
For Tesla, to build an EV (Electric Vehicle) Factory in India will take much time, and Tesla wanted to bring in their vehicles on to the Indian Roads by 2021. Therefore, hiring EV manufacturers is the only way they could go ahead with this level of speed. Elon Musk had tweeted that he certainly would bring Tesla to India by 2021, by whatever means, he has a plan for the Future, but not as so much is what Jay Vijayan feels.
Next year for sure
— Elon Musk (@elonmusk) October 2, 2020
The Future of Tesla in India
Jay Vijayan, the CEO of Tekion, feels that Elon is pulling the threads too hard at this stage. Even though 2021 is just four months away, they haven’t yet pulled out a strategy to ensure its viability in the country’s rigid ecosystem among automobiles. The Entrepreneur highlight that it takes a lot of time and money to export supplies and machines to India. Without setting by a structure that can help smoothen out Production, Elon would shell out more than the fiscal year’s usual overhead. He says,
“It’s all about the economy, Elon and his team have to measure out a proper blueprint first before setting any activity there (India)”
The Tesla Corporation announced the formation of its Fifth Gigafactory, but it wouldn’t be in India. The surprising fact that it wouldn’t set it up in a country as huge as India with a large labor force alarms investors if they tried to invest in Productions’ Indian scale. The Firth Gigafactroy will be set up in Asia but outside China is the remark. This could be good news for India and Tesla’s smart move, considering the feud between the countries. China has been exporting the vehicles that Tesla sells to the market. The part where it might offend the “Make in India” policy could be an obstacle in his path.
Considering the production costs and much more, the production and volume level they must push out vehicles will be mammoth if Elon Musk’s Tesla Team figures it out. Elon Musk could be sitting right at his desk, tweeting out much important news that might not even be feasible. The status shows that the plan to set up in India is still a far-fetched dream that doesn’t have legs yet. Making sure that its survival is a reality in India requires Tesla to be well-versed with their timings about the Indian market and when should pull the plug on such a reality or not.
If Tesla brought their plan to India, it would take them approximately three years to find soil and set up factories and other divisional operations. The Tesla dream isn’t dead yet, Elon Musk has been a figure who does what he says, and his team also follows the same ideologies. The only obstacle that lies in their path is the truth of the tweet. Will it happen or not? Will India advanced into the Top league of the EV Circuit? Only time will tell…