December 06, 2022

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Will Tesla gets success in India?

Will Tesla gets success in India

Will Tesla gets success in India?

There is no doubt that the launch of the Tesla Model 3 going to hit the Indian EV industry like an earthquake and shatter the sales records for few months. But, the temporary surge of Tesla going to settle down even faster than melting ice cream. Even if Tesla launches its electric car, it is going to be a rival to existing luxury gasoline cars and electric cars like Mercedes Benz IQC, Jaguar iPace and Audi E-Tron. It cannot affect the budget car market in India at any cost. Let us know will Tesla gets success in India. 

Now let’s talk about the pricing of Tesla model 3, speculations are going out that the pricing is around 60 lakhs to 70 lakhs. By looking at this price we can say, the targeted audience of Tesla in India are definitely the potential niche buyers. People of the middle class or upper-middle-class prefer to buy a double bedroom plot at a discount if they save 60 lakh rupees. But, not a luxury car. It does not just refer to Tesla, for all the premium cars available in India.

Because in India, the car is a status symbol, not a need. To be more specific we are more interested to buy a car if our neighbours had one, but not interested to buy one just because parking space is available. In India anything is possible, we had a crush on Tesla and love for Tata, but finally ends up marrying a Maruti.

Cars sales report 2020

We all need to agree that after looking at the sales reports, 2020, sales report of Maruti Swift was 1 lakh 60 thousand units sold. followed by Alto with 1 lakh 54 thousand units. Next, Tara motors, Tiago with 49 thousand sales followed by Nexon with 48 thousand sales. Finally, from Mahindra, Bolero with 53 thousand sales. Whereas if we look at the top Luxury car companies sales like Mercedes, BMW, Audi, Jaguar, Volvo, it is between 30,000 units to 40,000 units.

So, it is very clear that single-car model sales from Maruti are 4 times more than all the luxury car company car sales put together. That’s why we said Indians may give heart to Tesla, love for Tata but ends up marrying Maruti. Hence proven, the ownership excitement is less than the viewership excitement.

70% of the car market under 15 lakh rupees 

Every country has its own market, we cannot speculate the same calculations with other countries. In India, the budget car segment is the niche market. Most than 70% of the car market are occupied by vehicles under 15 lakh rupees. 

Moreover, people think, range anxiety is the main concern to buy an electric car in India, but the main concern is budget anxiety. But one thing is sure, cars like Mercedes Benz, Jaguar iPace and Audi E-Tron may struggle in reaching 3 digit sales at the beginning. But Tesla can reach 4 digit sales with its popularity and fan base in India.

Current electric car market

On the other side, if we see the current electric car market in India, 14 lakh is priced for Tata Nexon EV Stands top with 4000 units with the highest sales recorded in June 650 units. Whereas 24 lakh priced for MG ZS EV and Hyundai Kona EV sales are half of it. It clearly shows that electric car price plays a major role in the Audience mindset. If Tata launches an electric car in 24 lakhs, again the sales number will be lower. There is no point that Telsa has to come and change the Indian EV industry. Because our country is already in the phase of transition. Where the rate of change is nimble to budget and humble to Range.

Already EV disruption happened in the form of Tata, Mahindra Ather Energy, Revolt Motors, Bajaj, TVS in India. But just because of Tesla we don’t see an eruption in the disruption. Moreover, too much hype for any particular product doesn’t do any good for the market.

Tesla Model 3

Now coming back to Tesla Model 3 provides a 500 kms of range and a 200 kmph top speed. Where can we test it, in cities the top speed is restricted to 40 kph and Highways 80 kmph. So we need to go for a ride on a race track or a Runway.

Now coming back to the Tesla Model 3 Autopilot. The wonderful roads we have is most suitable for road rollers not sure how can it handle the Tesla. Also, Indians showing a lot of patriotism for made in India products, especially in the EV sector. So we need to wait and watch whether Tesla can beat Nexon EV sales First.

After complete analysis, it is very clear that Telsa will surely make curious about Electric cars in India, but not the velocity to uplift the EV Industry.

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About The Author

Mastered in Journalism and I am a dedicated writer for since 2018. I am an EV enthusiast. I love to write about electric vehicles, technology, startups, people, fashion, and trends. Through my writings, I love to contribute to my team's efforts to reduce the pollution levels in the world, especially from India.

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