Tesla's India launch (25 January 2021) update

 How Tesla's India launch will pan out?

The world's most valuable automobile manufacturer registered a local company in India earlier this month, a step towards its entry in the country, expected to be as early as mid-2021.

Tesla plans to import and sell the Model 3 in India for around $65,000-$75,000 - roughly double the price in the U.S. market, sources familiar with the plans said.

This means it will compete in India's even smaller luxury EV segment that has recently started seeing interest from the likes of Jaguar Land Rover (JLR) and Daimler's Mercedes-Benz.

But, Tesla is not just competing with luxury auto makers. The Elon Musk-owned company is also making inroads into India's fledgling electric vehicle market, which accounts for barely 5,000 out of a total 2.4 million cars sold in the country last year.

The market itself has other troubles. To start with, India has a lack of local production of components and batteries, negligible charging infrastructure and the high cost of EVs mean there have been few takers in the price-conscious market.

Reference : thehindu.com