Much-Awaited TESLA Has Finally Arrived in India: What Changes Can We Expect in the Sector?

How Tesla’s arrival in India is likely to impact the entire EV market? Let’s find out.

Tesla arrives in India

Tesla is in the Indian market finally!

The Ministry of Road Transport and Highways announced that American manufacturing company Tesla will start launching their cars for sale in India 2021 onwards. Elon Musk, who is the CEO of Tesla, had also tweeted about this earlier in 2020. Tesla is expected to launch 5 cars during 2021-2022.

The following cars are expected to launch in India this year:

Tesla Model 3 (estimated price – Rs 60 Lakh)
Tesla Model S (estimated price – Rs 1.50 Crore)
Tesla Model X (estimated price – Rs 2.00 Crore)


The Model 3 sedan will be competing against the Mercedes-Benz C-Class. Tesla Model 3 in India will be available through Completely Built Unit (CBU). It will have top speed of 250 kmph along with a drive range of around 500 kms in a single charge.

As per the recent reports, Tesla is in touch with 5 state governments and working on finding the suitable location for setting up the operations in India. The company is in talks with the state governments of Maharashtra, Gujarat, Karnataka, Andhra Pradesh and Tamil Nadu. All these states are already doing wonders for automobile industry as all the major OEMs and components suppliers are located here.

What major changes can happen with the arrival of Tesla?

It’s been many years since the government is trying to push Indian consumers towards electric vehicles. Nevertheless, the demand for electric vehicles is not as high as the mainstream petrol and diesel cars. The manufacturers of EVs and potential investors had almost lost all the excitement as their concerns were genuine. The big institutions have always wanted to make an investment in electric vehicle development but lack of component supply in the EV sector has always been there concern.

The lack of proper approach hasn’t really amplified the demand in the EV sector. In addition to this, the automobile industry was indecisive to analyze the emergence of capital driven charging stations which is supposed to be put up by government or private sector and the amount of time it would take to have an initial network of charging stations for EVs. The government desperately wanted the automobile industry to speed up the EV sector but the industry is very much helpless because of absence of appropriate ecosystem to shift to EV and therefore, the car buyers restrict themselves from switching to EVs. The increasing popularity of EVs such as Tata Nexon and MG ZS EV have given a push in the sector and have created hopes of having a successful EV market in India, but it wasn’t enough until someone like Tesla, who has its core expertise in the EV sector, could arrive in the country.

Now as Tesla has entered the market, it will bring high-performance, technology-friendly vehicles besides initiating lots of business opportunities for others. The brand’s arrival will also help in building a suitable infrastructure for EVs. In case, Tesla decides to make an investment in India’s local component factories, then the components suppliers are likely to commence new and positive contracts with the big American corporates for components supply agreements. And this will automatically boost the confidence of other electric vehicle manufacturers to upgrade electric vehicles as there will be never-ending supplies of the components.

With this kind of an ecosystem, buyers will get more choices in the EV segment, which will boost the demand of electric vehicles. Alongside, the greater scale of manufacturing will reduce the cost of production. And eventually, with an increase in demand for EVs, the government will also take initiatives to set up charging stations and facilitating the EV makers to a greater extent.

Read all updates on car and automobile industry here.

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