TESLA'S

INTERNATIONAL
ENTRY IN
BUSINESS
THE INDIAN
MARKETS

PREPARED BY
Joginder Singh Sandhu
Vayu 229
 TESLA
HIGHLIGHTS

Tesla, Inc. (formerly Tesla Motors, Inc.) is an American

automotive and energy company based in Palo Alto,
California. The company specializes in electric
car manufacturing and, through
its SolarCity subsidiary, solar panel manufacturing. It
operates multiple production and assembly plants,
notably Gigafactory near Reno, Nevada, and its main
vehicle manufacturing facility at Tesla
Factory in Fremont, California. As of March 2019, Tesla
sells the Model S, Model , Model X, Model Y, Roadster
(2020) and Semi vehicles, Powerwall and Powerpack b
atteries, solar panels, solar roof tiles, and some
related products.
Tesla was founded in July 2003, by engineers Martin
Eberhard and Marc Tarpenning, under the name Tesla
Motors. The company's name was derived from Serb
engineer Nikola Tesla. In early Series A funding, Tesla
Motors was joined by Elon Musk, J. B. Straubeland Ian
Wright, all of whom are retroactively allowed to call
themselves co-founders of the company. Musk, who
formerly served as chairman and is the current chief
executive officer, said that he envisioned Tesla Motors
as a technology company and
independent automaker, aimed at eventually offering
electric cars at prices affordable to the average
consumer. Tesla Motors shortened its name to Tesla
in February 2017.
MIT-WPU IB Project

How Tesla plans Currently, Tesla has Model S, Model X,

Model 3 and the Roadster in their

to enter the offering. The Model Y is also in the pre-

production along with the improved

Indian Markets. Roadster, which is expected to be in the

market by the year 2020.
Elon Musk said, "Hopefully, partial presence However, this partial presence may refer
in India, Africa & South America end of only to services for Tesla owners. It
next year, with broader expansion in 2020." remains to be seen if we can have a Tesla
showroom in any major metro city in
In 2015, Musk gave a presentation to PM Modi on
India too. We don’t expect Tesla cars to
the development of technologies that are
be manufactured in India anytime soon.
changing the face of the automobile industry. A
The last time Elon Musk had addressed
Tesla Model X was also seen on the roads of
the matter of bringing the Tesla brand to
Mumbai last year.
India, he had cited challenging
Tesla in partnership with Panasonic is the largest
government regulations as one of the
electric-car-battery manufacturer in the world
main obstacles. However, with India’s
claiming almost 60 per cent of the global
current focus on bringing down pollution
production. While Tesla will set up car
from road traffic, the government might
production facilities in Europe and China, the
loosen a bit when it comes to making
company plans to set up battery manufacturing
entry simpler for Tesla and some other
plants in every continent to keep the costs in line.
foreign electric car makers.
Current Challenges
for Tesla in India.
Elon Musk earlier said
"Would love to be in India.
Some challenging
government regulations,
unfortunately."

“I MET HIM (ELON MUSK) AND OFFERED FREE LAND. I ASKED

HIM TO COME AND SET UP THE MANUFACTURING UNIT IN
INDIA WE WILL GIVE YOU ALL THE SUPPORT NEEDED. HE SAID,
HE IS BUSY WITH CHINA AND US MARKETS,” SAID GADKARI IN
AN INTERVIEW.

Gadkari had visited Tesla headquarters

in San Fransisco last year and had
invited the iconic auto and battery-maker
to set up a facility in the country and
offered land adjoining any port. “If they
are coming, if they are ready to come,
we will welcome, we are ready to offer
them land and all type of help,”
Transport Minister Nitin Gadkari said in
an interview. “Presently Tesla doesn’t
have any proposal to come to India,” he
said. Palo Alto, California-based Tesla
declined to comment.
Major Obstacles for
Tesla.
Government Regulations -The tax on importing the car is
very high and tax on assembling the car with very minimal
localisation attracts higher tax as per my
understanding.Government will have to allow Tesla factories to
make battery for these cars.Government will impose a lot of
taxes on these cars, so even the Model 3 might go beyond
some people's limit of affordability. Teslas are already super
expensive.Our roads would be even more jammed because
Tesla cars are atleast 5 m long.Tesla would also love to
incorporate public superchargers but only if the government
permits Tesla to do so.All this will give rise to land acquisition
issues.
Direct Selling - Tesla follows a direct selling model in the US,
bypassing dealers and distribution in order to save costs. It
sells most of its cars through an online retail model. In India, a
foreign company that wants to set up retail operations is
required to source at least 30 per cent of parts locally. No
foreign car maker owns retail stores in India, which means
they don’t have to comply with the ‘FDI in retail’ norm.
All this raises a major Question

Will Tesla ever come

to India?
Unless it focuses on Inter-Operability, higher efficiency and better
profits, surviving in India would be difficult.

IT'S VERY UNLIKELY AT LEAST FOR A

FORESEEABLE FUTURE.

No. It's not gonna work out since the cost I way too high when you
convert it into any Asian currency. And even if they do. You won't
get service.
The Teslas work on a mainframe server and the telsa will not be
connected to the server. Given not many people will buy the car in
Asian countries, they won't set up servers.
Hence no self driving and Self stopping. Since the car is not
connected to a mainframe. And even if it is, will it work? Are roads
and traffic proper?
On top of that. Elon musk probably doesn't wanna sell electric cars
in the countries which rely majorly on fossil fuels for energy
production.
Research Sources
WEBSITES I USED TO OBTAIN INFORMATION

https://www.outlookindia.com/
https://www.statista.com/
https://entrackr.com/
https://www.youtube.com/
https://www.thehindubusinessline.com/
https://www.quora.com/

JOGINDER SINGH SANDHU DIV-VAYU ROLL NO. 229

THANK YOU !
Tesla's Entry into the Indian Market.

&