Tesla on its way in? Temper expectations.
Tesla’s much-anticipated entry into the Indian market, which had been under negotiation for half a decade or so, finally seems to be in acceleration mode. The company will reportedly send executives later this month to scout for sites in India where an electric-car factory with an investment of $2-3 billion could be set up.
As with Apple’s contract manufacturers, this could act as a vote of confidence for India to boast of globally and the government to uphold as a sign of its policy mix attracting the world’s movers and shakers. With Tesla’s sales in its key American and Chinese markets in a slump right now, both on account of slackening demand as well as stiff rivalry from Chinese EVs, it must enter fresh markets.
Its entry could aid the development of an Indian EV supply chain that might someday rival China’s and help electrify our traffic. While Tesla cars would be premium products here, India’s plan is to get EVs made here for exports, too.
As with Apple, Tesla sells on brand appeal more than price competitiveness, which gives it leeway on production costs. It also means its entry may not serve to advertise India as a low-cost manufacturing hub.
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