oppn parties Tesla Set To Enter India

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  • Calcutta HC says Cricket Association of Bengal is not liable to pay tax on advertisement inisde Eden Gardens cricket ground as it is not a 'public place' because it does not have unrestricted access for the general public
  • Supreme Court admits a plea from a child of a single OBC mother who had applied for an OBC certificate for her son
  • Supreme Court approves applying strict preventive detention laws for 'cybercriminals'
  • SBI likely to shift part of operations of its Global Market Unit from Kolkata to Mumbai
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  • Marine insurance costs surge as the oil corridor in Strait of Homruz becomes risky due to war
  • Stocks weaken on Monday on global cues: sensex sheds 511 points to 81896 and Nifty 140 points to 24971
  • Former left-arm spinner Dilip Doshi dies in London at 77. He played for India in 33 Test matches and for Bengal in domestic tournaments
  • Pant becomes the only keeper to score two centuries in the same Test in England
  • England Test: Rishabh Pant hits his second ton and KL Rahul a classy century to put India on top, England need 350 runs on the last day, with the ptich showing signs of wear and tear
  • DGCA orders an audit of the entire aviation ecosystem in the wake of recent snags in many flights after the AI Dreamliner crash in Ahmedabad
  • 2 Pahalgam residents arrested by NIA for sheltering and aiding 3 terrorists who killed civilian tourists in pahalgam tell the agency that there were 3 LeT ultras from Pakistan that carried out the attack
  • India unlikely to agree to US demands for lower tariffs on agri products and GM food, trade deal faces fresh hurdles
  • Stocks likely to plummet today as traders will be worried about the effect of US strike on iran, oil price rise and possible inflation. Foreign funds may also withdraw in the volatile global situation
  • Oil prices likely to shoot up as US strikes at iran and the latter decides to close the Strait of Homruz
Rishabh Pant hits second century of the match, becomes only wicketkeeper to hit two tons in the same Test in England ////// England need 350 runs to win in 90 overs on the final day
oppn parties
Tesla Set To Enter India

By Linus Garg
First publised on 2024-04-12 03:31:02

About the Author

Sunil Garodia Linus tackles things head-on. He takes sides in his analysis and it fits excellently with our editorial policy. No 'maybe's' and 'allegedly' for him, only things in black and white.

After the EV policy was changed recently and made more attractive for those willing to invest $800mn or more in India by allowing them import duty concessions on EV vehicle parts, it was a given that EV major Tesla would set up shop in the country. An indication for the same has now been received with the news that Tesla chief Elon Musk will be visiting India later this month and is likely to meet Prime Minister Modi to firm up his company's entry into the Indian market. Musk posted on X (earlier Twitter) that he looked forward to his meeting with the Indian Prime Minister.

Tesla has been doing the groundwork of entering the lucrative Indian market for years. It had been petitioning the government for concessions. But the government did not want to go overboard in welcoming the EV giant. Still, with the recent policy change, it is expected that Tesla will invest anywhere between $2-3bn in setting up manufacturing facilities in India to start with its entry-level electric cars, likely to be priced at around Rs 25 lakh. There will be more investments in downstream units.

Tesla has been under pressure in the US after its share prices had slumped. It is looking for new markets and the Indian market offers a huge opportunity. With the government pushing for EVs and the market still largely untapped, the demand for an aggressively priced, entry-level electric car is there. Hence, Tesla is likely to go all out to seek further concessions and guarantees from the government and enter the Indian market in a big way.

Tesla's entry is also likely to shake up the EV market in India. The company is known to aggressively push its products through various means and the Indian market for electric cars has remained stagnant despite the government's efforts to provide subsidy. High price of EVs has remained an obstacle for most buyers and it remains to be seen if Tesla can overcome that. 

image courtesy: CNBC (caption ours)