Despite govt push, Tesla India journey in slow lane
NEW DELHI: Is Tesla Inc. on its way to India, or not? While there is no definitive word from the company, cues from its recent conduct don’t promise positive tidings. Yet.
Despite the Indian government’s enthusiastic rollout of a new electric vehicle (EV) policy primarily aimed at attracting manufacturers such as Tesla, the Elon Musk-led automaker has remained non-committal about its plans to enter the country.
Tesla has not conducted any significant studies or got back to state governments with a proposal after initial discussions, two people aware of the matter said on the condition of anonymity. The people added that the Texas-headquartered EV major has not made concrete moves towards contacting state governments
or suppliers for setting up its supercharger infrastructure in India, which is crucial for the sale and adoption of the company’s EVS.
Plus, its chief executive postponed a visit to India at the last moment to lead an investor call, and its chief financial officer spoke about a reorientation of strategy towards profitability
and cost management, as the company comes under pressure following sliding sales of its EVS globally.
This, and the company’s lack of communication with its suppliers in India, appears to signal a lack of immediate intent from Tesla to establish a manufacturing presence in India, although it has formalised some partnerships with a longer gestation period, such as with Tata Electronics Pvt. Ltd.
“Moreover, Tesla’s approach to its India entry is markedly cautious compared to other automakers such as Vinfast, who have rapidly moved in even before the announcement of the new policy,” said a senior industry executive familiar with the plans of both the firms.
Vietnamese EV maker Vinfast has already begun construction of a battery and vehicle assembly plant in Tamil Nadu’s Thoothukudi.
“Their strategy is different from Tesla, which first wants to take the import route and test the market. Like Tesla, Vinfast is also going through its share of global challenges, but the difference in approach is evident,” the executive said.
Tesla didn’t reply to Mint’s queries emailed on Wednesday.
While representatives from
Tesla have visited sites in multiple locations in India, with states such as Gujarat, Maharashtra and Tamil Nadu as potential front-runners due to their existing EV ecosystems, aggressive subsidies and availability of ports, the company hasn’t followed through with detailed proposals or discussions yet.
Musk, Tesla’s CEO, known for his unpredictable management style and frequent shifts in business strategy, has further fuelled uncertainty about the company’s India plans.
People familiar with the company’s plans for India suggest that Musk’s cancellation of his visit also hinted at a possible dissatisfaction with the current terms of the new EV policy or the overall investment deal. Tesla’s plan to optimise its current capacity and production lines doesn’t leave it much room to make a new investment in India just yet, these people added.