Analysts say that without establishing its own manufacturing plant in India, the company could face difficulties in scaling up its operations in the country.
Tesla is making its much-anticipated entry into the Indian market, and as expected, it’s generating a lot of excitement. Initial reports suggested that the Elon Musk-led company was exploring land options to set up a manufacturing plant. It was later confirmed that Tesla will enter the Indian market by importing vehicles from its Berlin plant in Germany. Analysts have emphasized that for the EV company to establish a strong presence in the Indian market, offering an affordable model is essential.
Is a cost-effective Tesla a fantasy for India?
There have been reports suggesting that Tesla will launch an electric vehicle priced under Rs 25 lakh, but this seems unlikely. Without establishing its own manufacturing plant in India, the company may struggle to scale up its operations in the country.
Currently, the most affordable vehicle in the Tesla lineup is the Model 3 which costs under $30,000 around Rs 29.79 lakh. This includes the proposed 15% import tariffs. Kumar Rakesh, Analyst – IT & Auto, BNP Paribas India, said, “Tesla has plans to launch an affordable version of the Model 3 or Model Y in the second half of 2025, with management guiding to a price of $30,000 after IRA subsidies of EUR7.5k in the US, implying an ex-subsidy price of $37.500. Assuming Tesla can produce and sell at as low as $30,000, it will be considered expensive for mass volume in India once 15% customs duties are considered.”
Tesla sales drop by 45% in Europe
Tesla is struggling to weather the storm in Europe as its sales plunged by 45%. According to a Bloomberg report, the company sold just 1,277 units in Germany, its lowest sales figure since 2021, and saw a 63% decline in France, hitting its lowest point since August 2022. What’s more concerning for Tesla is that, according to the European Automobile Manufacturers’ Association, overall EV sales in Europe surged by 37%.
According to reports, Tesla is shifting its production line for the Model Y at the Gigafactory Berlin in Germany. Tesla expects the new Model Y to play an important role in the European market.
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This article was first uploaded on February twenty-five, twenty twenty-five, at twenty minutes past three in the afternoon.