Introduction
Introduction
The most popular global electric vehicle (EV) brand – Tesla – is entering the Indian market and will likely reshape the EV market in India. EV adoption in the country is projected to spike, fuelled by technological advancement, infrastructure support, consumer trust, government policies and affordability.
This insight paper sheds light on Tesla’s penetration strategy, impact on the EV market in India and the challenges and opportunities for the company. It also discusses environmental and economic benefits.
Tesla’s penetration strategy for India’s automobile market comprises the following:
Import EVs from Germany
Customise EVs to suit Indian consumers and infrastructure
Invest in local manufacturing
Focus on competitive state propositions
Discuss infrastructure development
Comply with regulations and achieve certification
Impact on India’s EV ecosystem
Tesla entry India is expected to hasten the country’s transition to a more sustainable and technologically advanced future in terms of automobiles. It is expected to lift industry standards, together with innovative technological capabilities including autopilot mode, full self-driving and over-the-air updates, pushing local EV makers to advance their battery performance, software integration and driver assistance technology. Besides, Tesla’s strong brand image would further intensify competition in the EV market in India, particularly with established names such as Tata Motors, JSW MG Motor, Mahindra & Mahindra, BYD India and Citroën India.
The factors expected to significantly accelerate EV adoption in the country are explained in the chart below.
Challenges and opportunities
Infrastructure development: India installed 25,202 public EV charging stations as of December 2024. However, the infrastructure may be insufficient to meet the expected growth in EV adoption. By collaborating with local partners to establish supercharger stations along major routes, Tesla may expand the charging network.
Government support: The Indian government, targeting 30% EV private cars on the roads by 2030, has executed several initiatives to boost the sale of EVs in the country. Tesla’s expansion potential hinges on government measures, which cover tax benefits, subsidies and investments.
Consumer awareness and support: Tesla’s strong brand reputation is expected to resonate with buyers in India. The company is also expected to increase the awareness of the benefits of EVs among Indian car buyers and ease concerns related to range, charging infrastructure and total cost of ownership.
Environmental and economic benefits
Conclusion
Tesla’s strategic penetration into the Indian EV market is expected to play a crucial role in the country’s march towards sustainable mobility. The company’s brand reputation will likely augment consumer awareness and EV adoption.
Tesla’s targeted entry strategy is expected to succeed in India’s price-sensitive market, creating intense competition for both domestic and international incumbents. Furthermore, to ensure the growth of the EV market in India, it is setting up a robust charging network, launching affordable and customised models as per Indian consumers’ driving requirements, optimising supply-chain networks and promoting local manufacturing, among others.
This transformation of India’s EV landscape, driven in part by the potential for Tesla manufacturing in India, aligns with the Indian government’s vision of becoming a global hub for EV manufacturing.
About the Authors
Shreya is a Delivery Manager in Acuity Knowledge Partners supporting consulting & corporate clients, across sectors. She has over 11 years of experience in working with global clients, being single point of contact (SPOC) on a variety of engagements for business consulting, corporate strategy, and deal advisory, across multiple verticals.
She specializes in market research, strategy development, commercial & financial due diligence, benchmarking (operational, financial, technology, pricing, among others), go-to-market strategy, competitive intelligence, market/opportunity assessment, among other related services. Her responsibilities cover client handling/management, project management, team management, sales enablement, and quality assurance.
She also attended several technology oriented international..Show More
Ankit Soni is a Senior Associate at Acuity Knowledge Partners, with over 5 years of experience in research and strategic advisory. He specializes in commercial due diligence, market sizing, and competitive benchmarking across sectors.
Ankit holds a Bachelor of Commerce (Hons.) from the University of Delhi with a specialization in Economics and is currently pursuing a Masters in Economics from Indira Gandhi National Open University, New Delhi.
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