by WAF Auto Think Tank
Elon Musk coming to India next week is Big News! It’s speculated that Tesla just might invest a couple Billion Dollars in the third largest automotive market in the world!
After the EV Policy change, Tesla could have just invested half a Billion dollars to get in the newly constituted 15% Duty bracket down from 100% Duty. But it chooses to invest much higher.
The richest man in the world coming to meet PM Modi during the time when the largest democracy in the world gets busy with it’s General Elections. Coincidence ? Fan Boy Moment ? Way to get more govt goodies post elections ? A competent strategy to keep formidable rivals like BYD still in their infancy?
Well time shall surely tell!
Time for Hard hitting facts now! The Electric car market is still fledgling in India despite record passenger sales last FY. Electric Cars hardly constitute 2% of total car sales. The Govt think tanks though are very optimistic that they would comprise a third of total car sales in the next 6 years!
But the main question which needs to answered is – Would the “Hard to Please” Indian Customers accept Tesla, amidst the currently fledgling e car market comprising players like Tata Motors, MG Motor India, M&M, Hyundai India and Citroën, to name a few!
Anuj Guglani, CEO, World Auto Forum commented,’ Electric Cars sell in India more due to the “Green Vogue”. The Cost of Running is surely addictive! Tesla with it’s latest and aesthetic designs, high tech ADAS and features, shockingly long range and the oomph factor induced peer pressure can surely ring in the sales.’
Mr Guglani further added,‘Higher the price, higher the aspiration and the exclusivity of the brand. In the initial years, Tesla might not be looking at a volume game but a game of establishing itself as a premium and a desirable brand. The rub off from the Maverick Image of Elon Musk would surely help! The decades of 70s & 80s belonged to the Angry Young Man and the current day and age are ruled by Sharks and Maverick Entrepreneurs. Overall the Tesla brand and products should be accepted by Indians, if they just follow basic branding and pricing hygiene factors and don’t mess up with any religious or social values, Indians swear and live by!’
The other thing is a strong business case. Initially it’s said that Tesla Germany plant just might feed the Indian Unit. However it would make a strong business case if the company plans, invests and builds a giga factory at India for India and the World!
Source: worldautoforum.com