Tesla in India: Tesla is all set to enter the Indian market. Elon Musk's company has completed the task of setting up its showrooms in India and recruiting staff. However, it is not yet clear whether the company will set up its production plant in India or not. But whether Tesla makes cars in India or imports from abroad, Tata Group will definitely benefit from it.
Competition between Tata Motors and TeslaTata Motors will be Tesla's biggest rival in the Indian electric vehicle (EV) market. Tata Motors is already the largest manufacturer of electric vehicles in the country and has a strong base in the market. Despite this, Tesla has strategic partnerships with some other companies of the Tata Group, which will indirectly benefit Tata.
Tesla and Tata Group DealSome of the companies of the Tata Group provide products and services essential for the automobile sector. Tesla has collaborated with the following companies of the Tata Group:
- Tata AutoComp – for the supply of automobile components and spare parts.
- Tata Consultancy Services (TCS) – for software and IT services.
- Tata Technologies – for engineering and design services.
- Tata Electronics – for supply of electronic components.
Under this partnership, these companies of Tata Group will now become part of Tesla's global supply chain. This means that whether Tesla's cars are made in India or in other countries, Tata Group's parts and technical services will be used in them. This will give Tata Group massive revenue and will also increase its international influence.
Possibility of Tesla setting up a factory in IndiaEven before Tesla's entry into India, the government has implemented a new EV policy. Under this policy, the tax on import of EVs from abroad has been reduced to 15%, which was earlier 70-110%. However, a condition has been laid down under this policy that any company that takes advantage of this tax exemption will have to set up a manufacturing plant in India within three years and invest at least $ 500 million.
It is not yet clear whether Elon Musk will set up his own plant in India or not. Recently, a report by Autocar India claimed that Tesla could get contract manufacturing of its cars in India, just like Apple does for its iPhones. Under this strategy, Tesla could partner with an Indian automobile manufacturer and produce its cars in its factory.
Signs of opposition in AmericaPolitical reactions are also being seen in America regarding Tesla's possible investment in India. Former US President Donald Trump has already expressed opposition to this decision and has advised Elon Musk to avoid investing in India. It will be interesting to see what impact American politics has on this decision.
