Tata-Mahindra ready to welcome Musk, how will Tesla sail through?

Tata-Mahindra Cars: Elon Musk's efforts to bring Tesla to India have been going on for a long time. He plans to enter India's fast-growing electric vehicle (EV) market. But, this dream is still unfulfilled due to high import duties and demands for concessions from the government. Meanwhile, domestic companies in India, such as Tata Motors and Mahindra & Mahindra, are setting new dimensions in the electric vehicle sector.

Now the question arises whether the ground is ready for Tesla in India or not? Will Donald Trump's return to America give new impetus to Elon Musk's visit to India? Let's understand.

Donald Trump and Elon Musk's closeness

The close relationship between Donald Trump and Elon Musk is not hidden from anyone. Recently, Donald Trump has entrusted Musk with the leadership of the new 'Department of Government Efficiency' (DOGE) in the US. This role not only gives Musk the power to interfere in US policies, but also increases his influence on global trade.

Donald Trump's business approach with India is also important. In his previous tenure, he had raised the issue of high import duty imposed in India on US companies like Harley Davidson. Trump has a good relationship with Prime Minister Narendra Modi. In such a situation, his return is expected to create a favorable environment for Tesla's entry into India.

Tata and Mahindra: New champions of India's EV market

Tata Motors and Mahindra & Mahindra have benefited the most from the delay in Tesla's entry into India. Both these companies have performed brilliantly in the Indian EV market and have won the trust of customers.

Tata Motors

Tata Motors has strengthened its hold in the electric segment. The company has several electric models like Tiago, Tigor, Nexon, and Curve. Soon, their market share is likely to increase further with large electric SUV models like Tata Sierra.

Mahindra & Mahindra

Mahindra has made its place in the market with advanced models like BE 6e and XUV 9e. These models have features like advanced Advanced Driver Assistance System (ADAS), which provides features like speed control and braking by recognizing not only humans but also animals. These features are suitable for the conditions of Indian roads.

In terms of price too, Tata and Mahindra vehicles can give tough competition to Tesla. While the BE 6e is priced at ₹ 18.90 lakh, the XUV 9e is available for ₹ 21.90 lakh. With these prices, Indian customers may hesitate to choose expensive options like Tesla.

Tesla's demands and Indian government's stance

Elon Musk had initially sought permission to import Tesla to India as a Complete Built Unit (CBU). For this, he had demanded exemption in import duty from the government, as CBU vehicles are taxed up to 100% in India.

However, the Indian government believed that Tesla should set up its manufacturing plant in India and take advantage of the Production Linked Incentive (PLI) scheme. After this, the discussion on Tesla's entry into India cooled down.

Recently, the Indian government changed the EV policy and reduced the import duty for foreign companies. This made Elon Musk plan to come to India again. However, no major update has come out so far after his plan to meet Prime Minister Narendra Modi was canceled.

Tesla in India: Prospects and Challenges

The Indian EV market has potential for Tesla, but the challenges are also not less.

Domestic competition: Brands like Tata and Mahindra are already offering affordable and Indian-friendly electric vehicles.

Price: Tesla's vehicles may be priced high for the Indian market.

Infrastructure: Charging stations and other EV infrastructure is developing in India, but it does not fully meet the requirements of brands like Tesla.

Conclusion

It could be a long and challenging process for Elon Musk's Tesla to enter India. Domestic brands like Tata Motors and Mahindra & Mahindra have made a strong hold in the EV market and have made the competition tough for Tesla.

With the return of Donald Trump and the new responsibility given to Elon Musk, it is possible that Tesla may get concessions in India. However, given the 'Make in India' campaign of the Indian government and the growth of domestic companies, Tesla will have to bring flexibility in its plans.

In the coming time, Tesla's entry in India can not only change the EV market, but it will also decide how the competition will be between domestic and international companies.