Tesla CEO Elon Musk’s confirmation of Tesla Inc.’s India entry with the setting up of a R&D unit in Bengaluru has buttressed India’s e-vehicle market. Tesla is one of the all-time best selling plug-in electric cars in the world and its India entry will be a game changer for the country’s electric vehicle market, market analysts say.
Tweeting from his official Twitter account Elon Musk wrote “As promised,” in response to a thread linked to a blog that analysed how India could still be a market to be developed for Tesla cars despite its high prices.
Indian government has been advocating electric vehicles for some time now in order to reduce the pollution levels in cities across the country. The government had tried to boost e-vehicle manufacturing through subsidies, tax breaks, fee waivers and incentives on investments, etc.
However, except for the two-wheeler segment, e-vehicle sales in India weren’t picking up as desired. Charging infrastructure and high cost of battery were deterrents with auto manufacturers expressing concerns on the lack of a suitable ecosystem to actively promote e-vehicles in India.
Tesla on the other hand will not just bring high performance, technology rich cars but will also build an ecosystem. With Tesla setting up a shop in the country, parts suppliers will tie-up for component supply contracts, pushing up the demand for electric cars. Perhaps it could turn out to be as big a revolution as Maruti brought in India in the early 1980s.
Other manufacturers will also develop confidence to produce electric vehicles once they are assured of consistent parts supplies. Electric vehicle enthusiasts will have some good options to choose from and as demand increases government will be awarding contracts for charging stations, eventually building a good e-vehicle infrastructure.
