According to Bain & Company, EVs account for about 5% of India’s auto sector.
The Indian government’s goal of achieving 30% of EV sales by 2030 “seems far-fetched at this point,” Chava said. However, he added that anywhere between 20% and 30% could be possible if government policies to attract foreign automakers are further strengthened.
“As India as a market gains traction, more and more players and investments will come in. [Tesla] It will definitely help the ecosystem develop and some consumers will ask for them,” Chava said.
Tesla CEO Elon Musk has postponed his planned visit to India this week to meet Prime Minister Narendra Modi, citing “heavy obligations to Tesla.”
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Just last month, the government announced that it would reduce import duties on certain EVs to 15% if automakers meet certain requirements. According to Reuters, India currently imposes a 70% or 100% import tax on foreign-made EVs.
India’s new policy says automakers that invest at least $500 million and set up manufacturing facilities in India within three years can import up to 8,000 EVs priced at $35,000 or more annually at lower tax rates. become.
The move is good news for Tesla, which has been lobbying for lower import duties for years as it seeks to enter the Indian market.
Domestic automakers including Tata Motors, Mahindra & Mahindra and Maruti Suzuki have reportedly expressed concerns earlier.
He also said, “I hope more players will come and have more choices. That will give consumers the opportunity to consider different options and choose from them. “And we will work together to educate our customers and address the issue.” and certain ‘myths’,” Chava said.
“Tesla is really welcome. It’s going to be good news for the industry, good news for the country, and good news for serious players like us.”
Tesla CEO Elon Musk previously said he was “incredibly excited about India’s future,” adding that the country has “more promise than any other large country in the world.” .
However, investing in the South Asian country may not be a priority for Tesla at the moment.
musk I postponed my planned trip. He was scheduled to travel to India this week to meet with Prime Minister Narendra Modi, but cited “heavy obligations to Tesla” as the reason for his absence.
Multiple media outlets reported last week that Musk was expected to announce an investment of $2 billion to $3 billion to build a new factory in India. According to Reuters, Tesla has already started looking for showroom space in New Delhi and Mumbai.
Indian Prime Minister Narendra Modi met with Elon Musk in the United States on June 20, 2023.
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The company reported Tuesday that first-quarter sales fell 9%, the biggest drop since 2012. But the stock rose more than 11% after Musk announced to investors that production of a new, cheaper EV model could begin by early next year.
The company recently cut prices in some key markets, including the US, China and Germany, as it struggles with declining sales and increased competition from Chinese EVs.
Chava also highlighted that demand for EVs in India is likely to remain weak as insufficient charging infrastructure suppresses confidence in switching to EVs.
“No country can say we are there in terms of infrastructure. It may take 20 years to get there,” he warned. “Our customers are very happy because we are achieving good range with electric cars, but we still have a long way to go.”
