The Indian automobile market may not be ready for an electric car revolution yet, but the world is. In fact, Norway is already living the future with thousands of fully electric Tesla cars roaming the streets of Oslo. With tax benefits provided by the government and no worries for the buyer to fuel the car ever, Tesla is definitely a hot favourite among many Norwegians.
Now, in Indian context, electric cars don’t necessarily fit in the buyers’ mentality. For one, electric cars are very expensive. The government plans to boost the sale of electric cars with 12 per cent GST against the 28 per cent GST on regular cars. But this is unlikely to boost the mindset of the buyers because of fewer options in the market. Second, the only major player in the market is Mahindra with its E Verito and e2oPlus. Toyota also makes its way in the picture with its imported Prius.
Modi government has said that they want to increase the use of electric cars in India and replace close to half of the motor vehicles to run on electricity on Indian roads by 2030. Given that, Mahindra has a market waiting for it to make the most use of.
But Mahindra’s foreign competition in India is most likely to be Elon Musk’s Tesla. Tesla is known in the car market as a fully electric car with complete autonomous and self-driving capabilities. The brand is focused more on the technology and depends on less on the mechanics. The brand focuses more on the premium products and futuristic designs.
Their latest car, the Tesla Model 3 is comparatively cheaper than its older models, the Model S and the Model X. It is what they call the “great, affordable electric car,” priced at $35,000 which is approximately Rs 23 lakh.
It will be very interesting to see when Tesla ventures in the Indian market. And when that happens, it will be even more interesting to see how the Indian car manufacturers react to it. But for that to happen, we have to wait a little while longer as Tesla is still a start up slowly expanding its market.