The traditional vehicle market was highly dependent on other factories/companies, in other words, a car company is more likely act as an assembly line where all the parts (like chases, semiconductor chips, mirrors, lights, seats) are brought from other factories and combined together to produce a finished product.  The same principle follows in the newly emerging electric vehicle industry too. The batteries, BMS, motor, controller, semiconductor, software support, and many such components are being ordered from other companies and assembled to create a finished performing electric car.

But the question is, how only a few contenders like TATA or Tesla are ruling over the whole industry? Here is the one-word answer; “Ecosystem Advantage”

The amount of market cap Tesla has captured among the large-established companies that too without even spending a penny over their marketing campaign is unimaginable. And the reason behind it isn’t technology or popularity (any company can build that) that helped Tesla to emerge out as a true competitor is a robust ecosystem for manufacturing their cars and enabling their users for enjoying their product. 

In India, the TATA is doing similar if not the same. The TATA universe has the advantage over every possible factor that can affect the manufacturing of electric cars or user-friendliness and here is why it’s very difficult for any other company to defeat TATA in the EV game.