Tuesday, October 19, 2021

Tesla Coming To India Is Exactly What The Central Government Needed For Automobile Sector

Tesla is in the news again and this time, Indians can’t keep calm. Nitin Jairam Gadkari, India’s Transport Minister and Minister of Micro, Small, and Medium Enterprises, recently confirmed the launch of Elon Musk’s electric automobile company Tesla which is soon coming to India. 

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According to the Times Of India report, Gadkari said – US Electric Vehicle Major Tesla will start its operations in India early in the year 2021. The company will soon start selling vehicles and looking at the demands of electric cars, there will be a plan to set up a manufacturing unit as well. 

Working with the vision of an economic-friendly car, Tesla’s monomaniac appeal has earned it the name one of the biggest automobile manufacturers in the world. According to Forbes, Tesla earned a spot in World’s Best Regarded Companies list in 2019. With some extraordinarily amazing features, Tesla Inc. has a lot to offer. 

Indians have been eagerly waiting for the company to start selling cars in the country. The government also reflected on ambitious objectives to take the edge off the sales and use of gas-powered cars. Let’s dive into the data and know how the Indian Government and Elon Musk are planning for Tesla’s Launch. 

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Tesla Coming to India in 2021

To complement the American automobile behemoth, Musk and the company is fixed to expand factories around the globe. After spending approximately 1 billion dollars for setting up new factories in Austin, Texas, Germany, and Brandenburg, Tesla marked Wednesday’s third-quarter earnings to $8.77 billion.  

On this achievement, Tesla’s CEO commented that he is amazed by the growth and has set a goal to hit 20 million vehicles by the end of the year 2030. Right after this, Musk made Twitter-teases by responding to the queries of Tesla watchers. A Twitter handle named Tesla Club India asked about the company’s progress to make an entry in India with a post having a T-shirt with a message “India Wants Tesla”. In response to that, Musk said, in October 2020 – “Next Year For Sure” along with a “Thanks for waiting” message. 

With this response, Tesla watchers started assuming the launch in January 2021. On December 26, 2020, a Twitter user further asked about any update of Tesla India in January 2021. The business magnate replied – “No, but definitely this year”

The billionaire CEO’s initiative to enter the world’s 4th largest car market has been in the trend for a long time. Back in the year 2016 and 2019, Tesla announced that the company had plans to start operations in India. But it was delayed and now the recent commitments by the business tycoon and announcement by the Transport minister regenerated hopes among Indian Tesla lovers. 

Tesla India launch became the talk of the town when Mr. Gadkari confirmed the news at the Indian Express Idea Exchange program. According to ETAuto, Tesla, one of the top auto manufacturing companies may start the booking early this year. Also, it gives a hint to start deliveries by the end of the first quarter this year. 

As announced by Elon in 2016, the first car will be the Tesla Model 3 Sedan which will be available at an expected range of INR 55-60 lakhs. This is considered one of the most affordable EVs designed by Tesla to date. Now that the years have passed, people are excited to witness which model will be the hood ornament of Tesla’s grand opening in India.

How Will The Country Benefit With Tesla Coming To India?

The Modi government and Elon Musk both are working towards the same aim that is reducing the use of fossil fuels in transportation. The Tesla-India deal will provide tons of benefits to the country and its people. The entry will give a boost to the electric vehicle segment in India and ultimately it will raise demands for batteries. 

  • If Tesla starts a production unit in India, then it can open good employment opportunities for brilliant minds who truly deserve such posts. 
  • India has now become one of the world’s largest battlefield for American and Chinese firms that want to explore their user base in the South Asian market. The launch of Tesla makes the car more economical for Indians as well as provides a huge user base to the company. 
  • This deal will motivate other Indian manufacturers to come up with some innovative designs and features to survive and face the competition. Hence, there will be an improvement in India’s economic condition. 
  • Tesla will break the ice by solving the pollution problem in India through its eco-friendly and pollution-free cars
  • Tesla works on the direct selling model rather than contacting dealers and middlemen. Cars are available at actual rates and the company-owned service centers will provide much customer satisfaction. 

Indian Government Plan to Boom Automobile Industry

Battery charge vehicles have been continuously striking the Indian news headlines. The government has also made various initiatives to promote the automobile industry in the country. Below are certain plans and initiatives disclosed by the government of India that can promote electric vehicles on a large scale. 

  • NITI Aayog prepared a plan and submitted it to the cabinet for further approvals which say, there will be an offer of $4.6 billion incentives to those companies who will set up advanced battery manufacturing units. Proposal chaired by PM Modi said that if electric vehicles are adopted on a large scale then India can reduce the oil import bills up to $40 billion by the end of 2030.
  • In September 2020, the Karnataka government invited Tesla to discuss and start the research work most probably in Bengaluru, as per the report of TOI. This will speed up the process of settling a manufacturing unit in India. 
  • The Ministry of Power has also offered a sale of electricity for charging the batteries of electric vehicles. This reduces the burden of several auto manufacturing firms. 
  • Finance Minister, Nirmala Sitharaman has declared a plan of production-linked incentives for ten different sectors. Among these sectors, autos, solar photovoltaic panels, and battery cells are there. To boom exports and expand work in core competency with cutting-edge technologies, this move will prove beneficial for the country. 

Tesla in India provides all these schemes with a much-needed boost. A lot of work still needs to be done to make the move successful and growing. As the Indian government is putting positive efforts for this sector to boost, India will surely become one of the best-growing markets for electric vehicles. 

Bharvi Vyas
An MBA in Media Management, Bharvi Vyas has been shaping content for challenged clients for over three years. A writer by passion and digital marketer by the intellect, Bharvi is also an art & craft enthusiast. She owns her YouTube channel of poetry named Kreative Karwan.

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