RCC

CASE
STUDY
Team Members:
ADIT SAHA
AKANKSHA JAIN
AVNEET
PRAGATI AGGARWAL
Introduction
United States-based Tesla is working through a
lot of challenges with the government to launch
its products in India.The electric car major had
requested the government to standardise the
tariff on electric cars to 40%, irrespective of the
customs value, and withdraw the social welfare
surcharge of 10% on such vehicles.Indian
government officials want the company to
commit to local manufacturing before
considering any tax breaks, but Tesla has
indicated it first wants to experiment with
imports.
 Government Intervention
Tesla's Plan
Tesla's plan to enter the Indian market has
been put on hold since 2019 due to high import
taxes on electric vehicles.
Red-Tapism is speed breaker to
Tesla's India entry.
In India, at some stage or the other must have
experienced the red tapism - And largely in
every corner of the government departments
and for some extent even in private sector as
well we must have seen it happens everyday.
Ease of Doing Business Ranking
Amongst the chosen 190 countries, India ranked
63rd in doing Business according to a survey
conducted by World Bank Report.
Taxation Policies
India levies a 60% import tax on electric vehicles
priced around 40,000$ or less and 100% on those
priced above 40,000$. Hence, the price of Tesla
cars which are already expensive would be even
higher
 INADEQUATE
INFRASTRUCTURE

Unavailability of enough EV
stations Unsuitable Roads
There are around 4,000 cities in india. There Indian market is not well prepared for
are 605 EV charging stations in India spread autonomous vehicles due to the soft
across 78 cities. Of these, Jammu and traffic rules and the unsuitable road
Kashmir has the least with 1 charging infrastructure.
stations. So, There are locational restrictions
on the use of automatic cars due to
unavailability of enough EV charging stations
 PRICING
High Price
As we know, government policies impose a 100%
import duty on importing vehicles costing more
than 32 lakh rupees, which makes Tesla cars
costing 60-70 lakh rupees in India. Pricing in comparison to non-EVs
As India is a price sensitive market, most people
are not ready to pay extra for electric vehicles. For
example Tata Nexon starts at 7.70 lakhs and the
Tata Nexon EV starts at 14.49 lakhs, considering
Trends in Indian Market almost double the price, the high gap will definitely
There are many car buyers in the Indian market, cuts edge for non-ev vehicles.
but at the same time, most people can invest only
7 to 8 lakhs. This makes an average of Rs.7.7 lakhs
that Indians spent to buy a car.
LONG TERM SURVIVAL
COMPETITION IN MARKET
Fisker is planning to open their showrooms in
India from july 2023
Tata avinya - Tata Avinya is expected to be
launched in India in January 2025 with an
estimated price of Rs 30.00 Lakh.
There are 4 Tata Electric cars currently
available for sale at starting price Rs 8.49 Lakh
Lakh.

TESLA SUITABLE FOR INDIAN ROADS?

TESLA has curated and developed self-driving
tech suitable for North American markets.
However, this tech could not clearly identify two-
wheelers. Two-wheelers made up a share of about
75 percent of the total vehicle fleet in operation
across India. Tesla’s autopilot is a very dangerous
feature to have.
 CONCLUSION

From the above analysis, we can conclude

India is not a good market for tesla. Tesla
should wait a few years and some
modifications in the technology are in
order for them before taking such a risk.

NO, Tesla should not enter Indian Market.

Thank You