The Impact of Elon Musk's Promise: What Tesla's Entry Means for Indian EV Charging Stations
Tesla, Inc. is an American multinational automotive and clean energy company headquartered in Austin, Texas. Tesla designs and manufactures electric vehicles, stationary battery energy storage devices from home to grid-scale, solar panels and solar roof tiles, and related products and services.Tesla will enter Indian market as soon as possible.Tesla's CEO Elon musk had a meeting with Indian prime minister Narendra Modi.He had confirmed that Tesla will invest in India as soon as possible.In this article we will see how Tesla's entry in India will impact ev industry.
Understanding the Significance of Tesla's Entry into India's EV Market
Indian EV industry is still dominated by two wheelers and three wheelers while market share of passenger cars is much low.Tesla's entry in India will give electric car segment major boost.Other EV automakers like Hyundai,Tata,MG,BYD are also present in mass market segment. Tesla holds the lion's share.Luxury car segmentslikeVolvo,Mercedes-Benz,BMW,Audi have already introduced their electric cars in the country.These brands will also change their strategy because of Tesla's entry.
While speaking about the possible impact of Tesla's entry to the EV market,Puneet Gupta (Director of S&P global mobility said that Tesla's entry will be a game changer for the Indian EV market. It will set a benchmark.Owning Tesla is a dream for many.This will eventually inspire many to opt for greener car.Tesla's entry will definitely amplify the confidence of EV ecosystem players in India.
Tesla in a developing country like India requires a closer survey of the Indian market, Tesla will have to launch an affordable EV in the country to achieve volumes and long-term success.
Evaluating the Current State of EV Charging Stations in India
The Indian government is currently focusing on establishing and development of charging station infrastructure. In general, it’s planning to set up a vast array of charging points throughout India by investing in infrastructure improvements.In the past four months alone, electric charging stations in India have increased by more than two-and-half times.The current ratio is approximately 1 charging station per 135 EVs — is significantly lower than the global ratio of 1 charging station per 6 to 20 EVs; this shortage in charging stations could push India to be 40% behind its EV 30@30 vision. India will need a total of 39 lakh public and semi-public charging stations, for a ratio of 1 station per 20 vehicles.To make it happen,the government has implemented a series of policies and incentives related to EV charging infrastructure, which affects all stakeholders in the EV ecosystem.
Collaborative Efforts: Tesla, Indian Government, and Private Players
Tesla has received approval for the homologation for four models which many believe don't include the Model X and Model S as the flagship cars will be too expensive for the Indian market as they will also get taxed heavily with 100 per cent import duty. Tesla is expected to come up with a deal where it commits to local manufacturing with the government reducing the import duties on the cars it imports from China where it has a Gigafactory in Shanghai.
The Indian government has recently requested Tesla to establish a domestic assembly facility within the country, Currently, a significant portion of the company’s electric vehicle production occurs in China.the government aims to foster domestic manufacturing capabilities and strengthen the country’s electric mobility sector. While Tesla is planning to build its first manufacturing unit in India, Reliance Jio is seeking an opportunity to deploy a private 5G network for the factory.
Summing up:
There has been a gradual shift from traditional petrol and diesel vehicles to electric ones. The demand for electric vehicles is on the rise because of increasing environmental awareness and innovation. The Government of India, too, has encouraged customers to purchase an electric vehicle by offering tax benefits and several incentives. Under FAME (Faster Adoption and Manufacturing of (Hybrid & Electric Vehicles), the government has allotted nearly Rs 11,000 crore over a period of three years to boost local manufacturing of EVs and for setting up of charging stations.Indian EV revolution is possible through strategic EV charging station expansion.
