The wait for seeing Tesla in India may get over soon. Indian citizens can now brace themselves for soon being able to see Elon Musk’s Tesla cars rolling down on Indian roads!
According to sources in the know, on September 10th, the revolutionary car-maker Tesla initiated discussions with the government officials of Karnataka for opening up a research and development facility in Bengaluru.
Currently, the talks are still at a preliminary stage. However, a follow-up meeting which is scheduled to be held later in this month will shed some light on concrete details.
In the month of July, Elon Musk, the Chief Executive Officer of Tesla had indicated that the company’s series of luxury electric cars will ‘hopefully’ make a debut in India and thus following up on the same, it seems that he has set the plan in motion.
Now, here the question arrives what’s in store for India if the talks do fructify?
Well, for starters, India will become the second country outside of the United States wherein Tesla has a research centre. This, in turn, will obviously attract the eyeballs of other promising global carmakers as well.
It is important to note here that Bengaluru is probably one of the best bets to open up its research centre for Tesla in India.
The city already hosts many local and global automotive companies such as Bosch, Mahindra Electric, Daimler, and so on
Bengaluru also serves as the home base for many promising EV aka electric vehicle startups Aether, Ola Electric, Sun Mobility and more.
Apart from that, the state of Karnataka was the first to create an electric vehicle policy to generate EV R&D and manufacturing investments of close to Rs. 31,000 crores.
Realising that need of the hour, 11 states which include Gujarat, Delhi, Maharashtra, Tamil Nadu, Telangana and Andhra also came up their very own policies.
Musk tweeted out in July that Tesla is looking for opening up another Gigafactory aka car and battery factory in Asia outside of China, “but first we need to finish Giga Berlin for Europe and a second US Giga to serve the eastern half of North America”.
In the same month, the company overtook Toyota to become the world’s most valuable automobile company.
Tesla currently operates in Europe, Latin America, Japan, Singapore, China and Australia. Hopefully, India will soon join the list soon.
Scope Of EV In India
According to a report by Avendus, a financial services firm, India’s EV market is expected to touch Rs 50,000 crore by 2025, out of which, battery, motor and controller together can be a Rs 15,000 crore opportunity alone.
The report further highlights how one can expect over 3 million EVs to be sold in India within the next 5 years with the majority of them being in the category of two and three-wheelers.
In 2016, Tesla opened up bookings for its Model 3 EV Sedan car from India on its website, however, failed to deliver the same to its buyers.
When Arvid Gupta – the former CEO of MyGOV – questioned Musk about the four-year delay in bringing the Model 3 to India, Musk tweeted out saying that he was sorry.
Earlier Tesla raised some concerns over India’s FDI aka Foreign Direct Investment rules which made 30% sourcing of goods from India for single-brand companies mandatory. However, the Indian government later amended those rules in October 2019 allowing foreign companies to source goods and services through their own third-party vendors. The changed policy also helped many companies including Apple, Xiaomi, to have better footprints in India.