Tesla's entry will change the country's EV market, it will affect everyone from Tata to Ola. - Newztezz - Latest News Today, Breaking News, Top News Headlines, Latest Sports News


Wednesday, November 8, 2023

Tesla's entry will change the country's EV market, it will affect everyone from Tata to Ola.

The electric vehicle segment is growing rapidly in the country. Their sales are increasing month after month. In such a situation, the possibility of Tesla's entry next year has increased the stir. This will change the country's EV market rapidly and will greatly impact companies like Tata, Ola and TVS.

India's electric vehicle market is changing rapidly and is also growing. The country's largest car company Maruti Suzuki is also going to make 15% of its total portfolio electric by 2030. At the same time, Tata Motors has invested heavily in EV and currently the best selling electric car is from Tata. In such a situation, what will be the impact of Tesla's entry in India? How will this change the entire EV car market of the country?

According to media reports, Tesla has agreed to invest in India. In the last few months, meetings of Tesla officials have been held with the Prime Minister's Office and other government departments. Company owner Elon Musk himself met PM Narendra Modi during his visit to New York. Now it is expected that Tesla will enter India next year, initially the company will bring Tesla cars here in fully built form.

The long-running fight to reduce taxes

Tesla wanted market testing before investing in India. It decided to enter India in 2021 and demanded the government to reduce the import duty on imported electric cars. But the government made it clear that tax exemption will not be available without manufacturing. This is how this conversation broke down.

While India hopes to generate employment from Tesla's investment, Tesla's entry into India is also a compulsion. While its sales are falling in western countries due to inflation and economic recession, Tesla is facing competition with local companies in big markets like China. On the contrary, India is an emerging market in terms of EV.

Tata, Ola, TVS all worried

The biggest opposition to reducing the import duty for Tesla was by companies like Tata, Ola and TVS, which are already making electric vehicles in India. According to the news of ET, he said that by giving this discount to Tesla, its vehicles will be cheaper. At the same time, it will open the way to India for many more foreign electric car companies like VinFast. Due to this, the hard work and investment made by domestic companies in popularizing electric vehicles in the country. He will be harmed.

However, the government had assured to keep the conditions normal for domestic companies by giving them subsidies and other benefits. But the matter does not end here. Tesla plans to sell Tesla electric cars in India for a price of up to $24,000 (about Rs 20 lakh) considering the Indian market. This will help in taking EV to more and more people.

Tesla always claims to provide cars with good quality and new technology, so its entry will definitely increase competition for domestic companies. This will affect not only 4-wheelers, but the supply chain of the entire EV segment.

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