“India’s electric vehicle sector still lacks competition, but entry from international automakers like Tesla will level the playing field,” MG Motor India’s CEO Emeritus Rajeev Chaba said.
“Competition is limited at this point in time. Numbers are still constrained because consumers don’t have compelling choices,” Chaba said.
EVs make up about 5% of India’s automobile sector.
The Indian government’s goal of achieving 30% EV sales by 2030 “looks stretched at this point of time,” Chaba, MG Motor said — “however, anywhere between 20% to 30% may be possible if more government policies are attracting foreign automakers”, he added.
“When India as a market gets attention, more and more players and investments will come in. [Tesla] will help in developing the ecosystem and some consumers will go for them,” Chaba said.
Tesla CEO Elon Musk postponed a scheduled trip to India this week where he was to meet Prime Minister Narendra Modi, citing “heavy Tesla obligations.”
Just last month, the government announced that import tariffs on certain EVs would be cut to 15% if the carmakers meet certain requirements. India currently imposes an import tax of 70% or 100% for foreign EVs.
According to India’s new policy, automakers that invest at least $500 million and set up manufacturing facilities in India within three years, will be eligible to import up to 8,000 EVs that cost $35,000 or more a year, at a lower tax rate.
The move is good news for Tesla, which has been trying to break into the Indian market, and has been lobbying for lower import duties for years.
Domestic carmakers such as Tata Motors, Mahindra and Mahindra, as well as Maruti Suzuki, have reportedly expressed concerns before.
He also said: “I wish more and more players come, with more and more choices. Because that will give consumer a chance to look at the various options and go for it. And collectively, we will also educate the customer and address the issues and certain ‘myths,’” said Chaba from MG Motor.
“Tesla is welcome. It’ll be good for the industry, good news for the country, and serious players like us.”
Tesla CEO Elon Musk has previously said he was “incredibly excited about the future of India,” adding it has “more promise than any large country in the world.”
However, investments in the South Asian country may not be Tesla’s priority right now.
Musk postponed a scheduled trip to India this week where he was to meet Prime Minister Narendra Modi, and cited “heavy Tesla obligations” as why he could not come.
Multiple media reports last week said Musk was expected to announce a $2 billion to $3 billion investment in India to build a new factory. Tesla has also already started looking for showroom space in New Delhi and Mumbai.