Why is Tesla not coming to India?

Tesla is one of the world’s biggest manufacturer of Electric Vehicles. In India also there is a large numbers of fans of Tesla. But still we don’t see Tesla vehicles running on Indian roads. You wonder why? When a lot of people asked on twitter that when will Tesla come to India?

Elon Musk Tweeted! Tesla will hit the market in 2019 if not, it will definitely by 2020.

Why is Tesla not coming to India?

Well, 2019 is gone and more than half of 2020 in gone, now we need to see whether or not Tesla will enter the Indian Market in remaining of year 2020. Tesla produces the most efficient and the fastest electric cars in the world. India has kept a target that by 2030 all the vehicles running on their roads will electric vehicles.

Why is Tesla not coming to India?

So the question is Why one the world biggest and most innovative company, Tesla! Is not coming to such a big automobile market like India. Tesla's Electric Vehicle is available in almost every other big automobile market like North America, china, Europe, Hong-Kong. So why not in India?

So here, we will talk about electric vehicles and will come to Know, Due to what problems Tesla is Not able to Enter India.

Today India and China Both Of them are facing a very big problem and the problem is of Polluted cities. When Ever we think of polluted cities we get the notion of vehicles. Vehicles are responsible for 40% of the pollution caused in cities. But there's a solution to this problem and that is to make a transition from petrol and diesel vehicles to electric vehicles.

Why is Tesla not coming to India?

China has understood this very well but it's taking some time for us. Almost half of the electric vehicles in the world are in China. World's 99% of the electric scooters and 99% of the electric buses are in China. It's not like that India doesn't have any electric vehicles but most of them electric autos. In India, people only like to buy those cars which are not very expensive to maintain and ride,& the price of the car should be in their budget. That's the reason that today also the Indian market is being dominated by Diesel and petrol Vehicles.

The technology used in Diesel and petrol cars is very old, so that's the reason that today these cars have become so affordable. On the other hand Electric Vehicle is a new alternative in today's market just like the engine is the most important component in diesel and petrol vehicles similarly, in an electric vehicle, the most important component used in an electric vehicle is the battery. Because how much distance will your car run after one full charge depends on the battery of the car.

Why is Tesla not coming to India?

Today the battery manufacturing technology is evolving rapidly lots of efforts are made to increase their efficiency and power, but still today also the price of these batteries is very high. That’s why the main pitfall for electric vehicles is that, batteries are ridiculously expensive.

The cheapest car made by Tesla is Tesla Model 3 priced at $35,000 i.e. 24lakhs Indian rupees, that is way beyond the budget of an average Indian consumer. And if you think that not that much expensive then, let me tell you that, the import duties to import this car to India is not included in this. We will talk about import duties in a while.

Why is Tesla not coming to India?

Tesla is not available in India right now, so let's talk about the electric car that are currently sold in India, Mahindra e-Verito. It is the most popular electric car sold in India priced at around $18,000 which takes around 11hrs to be fully charged. After one full charge in runs around 140km but a tesla car runs around 400km. It’s because today the batteries used in Tesla cars are the most efficient & highly energy-dense. A lot of companies like Mercedes, BMW, and Audi are far behind tesla in this technology.

With the help of Japanese company Panasonic Tesla is manufacturing its batteries. Along with this Tesla has also made huge investments in Research& Development and in its manufacturing plants. And so Tesla is a leading the market of Electric Vehicles

The future of electric vehicles in India is still a bit doubtful. And no significant development is made in the battery manufacturing industry of India. Maruti Suzuki was supposed to launch the electric version of wagonR, But now the company has dropped that plan.

Why is Tesla not coming to India?

The first Tesla factory outside the USA was built in Shanghai, China. The plan was to make this factory in India but later it was changed to China. (You guys have probably seen this video of Elon musk where he is dancing in one of the Tesla events held in China). Tesla didn't get the kind of ecosystem for electric vehicles in India which it got in China. Tesla is very popular in China as compared to India and it was one of the reasons that Elon Musk choose China.

Some Statistics about Indian Automobile Market. In between December 2019 to June 2020 a total 1, 88,000 passenger vehicles were sold out of which only 1,309 were electric vehicles. So the market share of electric vehicles in India is around 0.07%.

And in this also there is one problem that In India, people don't have many choices while buying an electric vehicle. In India, there are only a few counted electric vehicle cars are available. Out of which only a few of them have been somewhat commercially successful.

Now let’s talk about the extra bucks you have to give while purchasing a tesla. If you wanna buy a Tesla Model 3 in India for that, you have to pay a fee to the govt. of India, Which is called Import duties.

Why is Tesla not coming to India?

Elon Musk said that the import duties is almost 100% which is extremely high which makes  it unaffordable. Which means that if you wanna drive a $35,000 Tesla in India, you have to invest more that $70,000 which is way too expensive. That’s why Tesla ignored the Indian market and has given more importance to other global markets. To increase the sales of Electric Vehicles in India the govt. and the automobile companies have to make a collective effort to support the electric vehicles. We need to develop the infrastructure and along with this, the most important thing is we need to develop the trust of people on electric vehicles.

In October 2019 TATA launched Tigor EV and In January 2020 TATA launched the electric version of TATA Nexon, i.e. TATA Nexon EV. The response so far has been good for Nexon EV. In a sombre March, TATA managed to sell 198 Nexon EVs. In comparison, MG Motors managed to sell 116 units of the much more expensive and bigger ZS EV.

Why is Tesla not coming to India?

And now if we Indian start-ups in the field of electric vehicles, then Ather energy, a Bangalore based start-up which is providing some promising electric scooters. And this company is slowly gaining momentum in the market.

As Electric vehicles will get more and more popular in India it will be most beneficial for the people of the country. Every Year India Imports around $90-$100 billion worth of crude oil. For comparison, the entire education budget of India is around $14 Billion If not entirely but only by some amount if we are able to decrease the bill of oil import then it will have a very big impact. Along with this, the taxpayer's money will stay inside the country rather than going out.


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