"With assigning different projects to the employees working on Tesla India it has made the speculations of Tesla exiting India more promising"
With the explosion in the electric vehicle industry in 2019, Tesla motors started laying its foundation to capture the electric vehicle market just as it has done in the whole world. In 2019 as many companies (mainly startups) started launching their EVs in the market and by looking into the costumer’s response investors started pouring immense amounts of funds into the companies working in the electric vehicle industry and the government also floated many incentives to support the electric vehicle seen in India.
By observing such a great opportunity, one of the most successful businessmen of the decade “Elon Musk” decided to capture this emerging industry in India, which is a really positive initiative for both “Tesla” business and the Indian economy, but the reason why it failed is;
Tesla has already built their Gegafactory in China and now if Tesla wants to sell their electric cars in India they either have to import the fully assembled electric car from China to India or manufacture the car in India. Now the problem here is, that the Indian government imposes a 100% tax on every imported automobile, and on top of that Tesla manufactures cars in China and sells them in India will directly to our rival country “China”.
This leaves “Elon musk” with only one way to sell their cars in India which is to set up a fully functioning manufacturing plant in India and to be profitable Tesla can’t even think of doing this. Due to a very small market of luxury cars in India Tesla will definitely go into losses, as there will be barely any returns upon investing in India.
Here’s how Tesla has completely exited from India:
All the representatives of Tesla India have diverted their focus into other projects and now they are focusing more on Middle-east and Asia-pacific markets.
- Nishant Prasad who is the in-charge of establishing Tesla’s supercharger network in India (to create a powerful ecosystem for their electric cars in India) has changed his LinkedIn profile to Charging operation lead APAC
- Manoj Khurana, who was Tesla India’s first recruit, responsible for business development and public policy was transferred to USA California for a product role.
Along with that, the company has also stopped test-driving its “Tesla Model S” on Indian roads for a very long time. This series of events directly indicates that “Tesla Motors” is no more planning to make a factory in India and aims to Indian EV industry at least for now.
Is it bad news for Indian EV space:
A big no, in fact, this is great news for the Indian automobile industry and economy. As our Indian company “Tata motors” is has a shear focus to deliver the world’s best electric vehicle for the Indian customers and become the global leader in the electric car space.
(It has showcased the Tata Avinya)
Now you may argue that “Tesla would have built a robust charging ecosystem that can be used by all the EV users in the country” But if you would have observed that in just 2 years the Tata power has done extraordinary work in this field and set-up the charging ecosystem in every corner of the country, and in the coming years the Tata power is going to be working more aggressively to increase their density of charging stations.
I personally believe we should give some time to the Indian companies and “let Indians drive India” not some other country.
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