Tesla targets cost-conscious consumers in India's EV market

Tesla is set to launch its electric vehicles (EVs) in India in April 2025, following discussions between Elon Musk and Prime Minister Narendra Modi. The move is part of Tesla's strategy to diversify and tap into new markets as its stocks face challenges globally. Experts believe Tesla will mainly compete with high-end car brands rather than domestic manufacturers like Tata Motors and Mahindra. The cheapest Tesla model, the Model 3, starts at around $42,000, which is significantly higher than most Indian consumers can afford. In contrast, Tata's most expensive EV costs about $22,000. Tesla faces several hurdles in India, including a nascent EV market that constitutes only 3% of total vehicle sales. Many Tesla models have low ground clearance, making them less suitable for Indian roads that often have potholes and uneven surfaces. The lack of charging infrastructure is another concern, with only 25,000 charging stations available nationwide. There are also reports that the Indian government may reduce import tariffs on EVs, which could benefit Tesla but raise concerns among local manufacturers. Experts argue that inviting Tesla could increase competition and improve the overall quality of EVs in India. However, the reduced tariffs may hurt domestic companies that invest heavily in research and development. The long-term success of Tesla in India depends on how many cars they can sell and whether they adapt their products for the local market. Currently, Tesla plans to operate in India by selling imported cars, raising questions about job creation and local manufacturing in the future.