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Can Tesla Capture India’s Price-Sensitive EV Market?

Tesla has started hiring for roles in Delhi and Mumbai, signaling its potential entry into India’s growing electric vehicle (EV) market. However, the big question is whether Tesla can succeed in a market that’s highly price-sensitive. Currently, Tata Motors leads the EV market with over 60% market share, followed by MG Motors and Mahindra. These companies offer affordable EVs, with base models costing less than half of Tesla’s starting price of $40,000.

Tesla’s premium pricing and vehicles with low ground clearance may not suit India’s road conditions, potentially raising manufacturing costs for necessary modifications. Additionally, despite growing interest in EVs, they still make up less than 3% of the total car sales in India. Infrastructure like charging stations remains limited, with only about 25,000 stations nationwide.

Nevertheless, India is pushing for a national shift to electric, offering significant subsidies and incentives for EV manufacturers. These policies have led to rapid growth in EV sales, making India an attractive market. Tesla may still find success among India’s rising affluent class, but its local manufacturing plans