1.Introduction
Before knowing what will be the impact of Tesla coming to India on local EV companies, let us know a little about the scope of this market in india.
Electric vehicles are growing very fast all over the world and India is also not behind in this. In today’s time, a growing country like India cannot stay behind. Although electric vehicles are still in their initial stages in India, but because India has a lot of population and pollution, it is being adopted very fast and it is clearly visible how much potential and scope this industry has in India.
And Tesla’s name comes in all these. You must know that Tesla is a big player in the EV sector. Tesla is known for its advanced technology, autopilot features and efficient battery system. When Tesla enters India, there is every possibility of market dynamics changing, but the question is whether Tesla’s entry in India will serve as an opportunity for our local EV sector or will it be a hindrance
2. Benefits of Tesla coming to India
A. Technology Advancement
The biggest impact of Tesla coming to India will be technology advancement for India
a. Tesla’s battery technology and fast charging system will set a standard across the world and will be of great benefit to India
b. Local EV companies will be inspired by Tesla’s EV technology and it will also work on its technology and upgrade it, which will benefit the whole country.
c. Another advantage will be that this auto pilot and AI based features of Tesla will attract the consumers and increase their expectations, due to which our local companies will also have to innovate in their products and add new AI featurs.
B. Boost in local competition
Tesla’s arrival in India will motivate Indian companies or rather they will be forced to increase their efficiency and quality of their products and this will give a positive effect to IndiaMany other things can happen with the arrival of Tesla, such as companies like Tata Motors will produce affordable cars and will focus more on marketing. Companies like Ola Electric and Mahindra Electric will try to launch new designs and cost effective cars.
C. Market Expansion
As of now people do not have faith in EV but with the arrival of Tesla, their new models like Model 3 and Model Y will attract new consumers in the market. EV adoption in India has been very slow but with the arrival of Tesla it will grow very fast. Government subsidies will also boost adoption and it is also important for the environment, so all this is necessary and these are the benefits. With the arrival of Tesla, all these will be very big benefits for India.
3.Challenges for Local EV Companies
A.Pricing and affordability
Another impact of tesla coming to india is tesla’s products belong to the premium segment, which will not attract the middle class customer, but when they will start their production for the middle class, it will be a challenge for local EVs and local ABC companies like Ola Electric, Tata and whatever local companies are there in the sector, they will have to think about how their survival will be, they will have to do new experiments and innovations and it will not be easy for them to compete with Tesla, when Tesla also does local manufacturing, it will reduce its prices and it will be a big challenge for the local company to offer high quality products with competitive pricing.
B. Technology Gap
Tesla’s R&D budget and resources are huge and advanced. Local EVs companies in India such as Tata Motors, Mahindra and Ola Electric may have to work hard to adapt to Tesla’s advanced battery technology. They will have to spend a lot on R&D and this can be a very headache for local companies. Local companies will have to improve their innovation and technology if they want to maintain their place in the Indian market.
4.Strategies of local EV Companies
All local EV companies will have to make their own selections so that they can make separate niches and create their own separate brand. Budget friendly options from Tata Nexon and Tiger will remain major attractions for consumers but Tata will keep its focus on low light production and affordable pricing. Ola Electric is popular for affordable EV scooters but after Tesla’s entry, Ola can try to expand its portfolio like trying to launch electric bikes and cars. Mahindra Electric will also try to create its own separate position. Mahindra’s image is for premier commercial vehicles. Mahindra can introduce budget friendly passenger vehicles in competition with Tesla’s premium products. But if the company has to survive, then it will also need research and development because in today’s time the sector is moving very fast and Tesla knows how to take advantage of it well. If Tesla is given freedom, then it can swallow all the companies like a giant, so all the local companies will need to work at their own level and at the end all these things will be with us. The country will only benefit, competition will increase, budget friendly vehicles will be launched, which will help our country grow
5.Conclusion
Tesla’s arrival in India will be a huge revolution in the EV industry. Yes, some companies will be finished which will not be able to do research and development at their level and will not be able to survive, but those who work hard at their level, do research and development, accept innovation will give competition to Tesla. Consumers will have more options. Tesla’s arrival will promote competition and innovation. Local companies will have to enhance their technology and pricing strategy. Tesla’s entry will be a threat on one hand, but on the other hand, it will also be a huge opportunity for growth and expansion, due to which our country will grow and emerge as a new market in the whole world. Everyone will face problems, but only those who contribute to this revolution and work hard will grow, the rest will be crushed like ants with this Tesla coming to India.
What do you think, what impact will Tesla’s entry have on local EVs, will they suffer losses or will they get new business opportunities? Do share your opinion in the comment below and if you liked this information, do not forget to share it with your friends and follow our blog and stay connected for new updates.
