Tesla apparently intends to develop an affordable electric car – indiansupdate.com

Tesla apparently intends to develop an affordable electric car in India for under $24,000 (roughly Rs. 19.85 lakh). China’s loss in the Indian electric vehicle (EV) market could present an opportunity for Elon Musk’s Tesla. While Tesla received a warm welcome in India for its investment proposal, its main competitor, China’s BYD, faced increased scrutiny from the Indian government.

This situation has potentially opened doors for Tesla to negotiate favorable terms for its entry into India’s automotive market without the competitive pressure from BYD, unlike in other emerging markets. The outcome in India could have global implications for the EV race, according to Jasmeet Khurana of the World Economic Forum.

Tesla is in closed-door talks with Indian officials about investing in a prospective production facility and producing a low-cost EV priced at $24,000 (approximately Rs. 19.85 lakh) until an encounter with Elon Musk and Indian Prime Minister Narendra Modi in June. On the other hand, BYD seems to have taken a backseat in its pursuit of a $1 billion investment in India after facing setbacks, including an investigation into alleged underpaid import tax.

Indian officials are concerned about the national security implications of Chinese-made vehicles and data collection, making them wary of Chinese automakers. However, India appears more receptive to Tesla’s plans, which include bringing Chinese suppliers to India, following a partnership model similar to Apple’s.

India’s increasing focus on the EV market, combined with the government’s incentives for local production, is attracting global players like Tesla. Tesla aims to expand its global car sales to 20 million units by 2030, while BYD holds a strong position in EV sales, particularly in China.

The Indian EV market is expected to witness significant growth, with annual production estimated to reach 1.4 million units by 2030, representing nearly 19 percent of the global production. Tesla’s entry into India with an affordable product tailored to the local market could make it a popular choice among consumers. At present, Tata Motors dominates the nascent Indian EV market, but Tesla’s potential entry and competition from other players like MG Motor and BYD could shape the industry’s landscape in the coming years.