According to reports from China, Tesla’s plans to set up an electric vehicle facility in India may not succeed in the Indian market, which is described as ‘unprepared and immature’. A report by Global Times emphasized that this move might not be a wise decision for Tesla.
Concerns from China are growing regarding Tesla’s entry into the Indian market!
Tesla CEO Elon Musk plans to visit India later this month to meet with Prime Minister Narendra Modi. Musk expressed his eagerness for the meeting on the social media platform X, stating he looks forward to it. Following a meeting with Modi in New York last year, Musk assured that Tesla would be in India “as soon as humanly possible.”
This major step by Tesla in India involves setting up a factory to produce entry-level electric cars with an investment of at least $2-3 billion. However, despite the growth of the electric vehicle market in India, electric cars only accounted for 2.3 percent of total passenger vehicle sales in 2023.
Moreover, the lack of public charging infrastructure, power outages, and the expansion of coal mining for energy production are among the main challenges Tesla might face in India. China is expressing concerns about Tesla’s potential failure in India.
With its significant production capacity at Tesla Giga Shanghai, China questions whether Tesla can achieve similar success in India. The Indian government has approved a new electric vehicle policy in response to Tesla’s requests, which marks an important step towards Tesla starting local production in India.
The steps India is taking to welcome Tesla should adopt a more realistic approach to strengthen regional collaborations and promote production development with a more pragmatic attitude.
How will Tesla’s potential ups and downs in the Indian market affect the global electric vehicle industry? How could Elon Musk’s visit to India and this significant investment plan transform the electric vehicles and the overall automotive market in India? Share your thoughts and opinions in the comments section.
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