The Model 3 and Model Y could be brought into the country from the Chinese Gigafactory of Tesla in the 2021-22 period
Tesla is reportedly considering exporting models from China for sales in India. The electric carmaker has certainly been revolutionising the global automotive industry in recent years and rumours have often cropped up regarding its entry into our domestic market – one of the largest in the world. However, issues involving logistics, taxes and longer delivery time may prompt Tesla to ship the first lot of models from United States instead initially.
The two models are said to be the entry-level Model 3 sedan and the Model Y sports utility vehicle – both of them have been well received not just in the US but across the globe. They are believed to be introduced locally in the 2021-22 period. The report quoting a ‘well informed source’ indicated that the forthcoming manufacturing plant in China is tasked with rolling out affordable models of the Model 3 and Model Y for Asian countries including India.
It will also address the vast Chinese market as its initial tenure will concentrate on production for the People’s Republic. A few batches of right-hand-drive Tesla may arrive at the Indian shores eventually. The company hasn’t made a final decision yet as importing its models from China will involve huge challenges ahead. Tesla once considering setting up a production base in India but the plans fell through and resulted in the move to China.
We do not expect Tesla to make its debut in India anytime soon as no definitive plans for electric vehicles are set in stone. Moreover, the lack of charging infrastructure could become a primary concern for a manufacturer of Tesla’s magnitude. Unlike the developed markets, the changes of Tesla targetting volume sales in India are very less considering the price range of its models.
Tesla’s main concern will currently be expanding its volumes in China, the largest EV market worldwide and resultantly the Chinese Gigafactory came about to meet the local demands and price the models competitively. Elon Musk expressed his willingness to sell his EVs in India previously but he rightly pointed out the challenges based on government regulations.
The California-based brand could initially create a niche image when it arrives in India before making moves depending on the market scenario.