The electric vehicle (EV) landscape in India is evolving fast, increasingly becoming less attractive for Tesla. India’s passenger electric vehicle makers are launching new vehicles even as the EV and battery sector too grows.
Musk didn’t like India’s new EV policy
Musk in April scrapped a planned visit to India that would have included a meeting with Prime Minister Narendra Modi, citing pressing issues at the company. He had originally announced his visit just weeks after India’s new EV policy lowered the import taxes on EVs from foreign carmakers that pledge to invest at least 41.5 billion rupees ($497 million) and start EV production from a local factory within three years.
India doesn’t expect Tesla Inc. to move forward with an investment in the country any time soon after executives at Elon Musk’s electric carmaker stopped contacting them, people familiar with the matter had told Bloomberg a few months ago. Musk’s team didn’t make any further inquiries with officials in New Delhi after the billionaire postponed his visit to India in late April, the sources told Bloomberg. The government is given to understand that Tesla has capital issues and doesn’t plan on pledging fresh investment into India in the near future, they said.
Musk’s loss of interest in India came as Tesla reported a second consecutive drop in quarterly deliveries globally and faced heightened competition in China. In third quarter too, Tesla handed over fewer vehicles than analysts expected as stiff competition in China and Europe hit demand for its aging models, putting the electric-vehicle maker at risk of its first-ever decline in annual deliveries.
Indian EV makers are upping their gameWhile Tesla is still undecided on its India entry, Indian EV makers are upping their game despite a market slowdown. Mahindra & Mahindra (M&M) on Tuesday unveiled the highly-anticipated Born Electric range, featuring two electric SUVs—the BE 6e and XEV 9e. Both SUVs leverage the ‘INGLO’ platform, a flat-floor skateboard design aimed at enhancing cabin space, eliminating the central tunnel. The platform integrates high-density battery technology, delivering efficiency and range optimization. The expected range is 450-500 km per charge. Both SUVs support fast charging, achieving 20-80% battery capacity in just 20 minutes, alleviating range anxiety. The price for the Be6e starts from Rs 18.9 lakh (ex-showroom) and the indicative on-road price is Rs 20.36 lakh. There is buzz that Mahindra might launch these models in Australia to rival Tesla and Kia.Rajesh Jejurikar, ED & CEO, Auto & Farm Sectors, Mahindra & Mahindra, has told ET that EV buyers in India are being deterred by the lack of desirable products instead of concerns of high initial acquisition cost, charging infrastructure or battery life.
JSW MG’s Windsor is democratising India’s EV sector. The first electric car in India to feature a “battery as a service” (BAAS) model, it has emerged as the top-selling green car in October 2024, outpacing competitors like the Tata Nexon (1,593 units), Mahindra XUV400 (602) and Tata Curvv (1,542 units), with 3,116 units sold. This innovative model separates the vehicle cost from the battery price, allowing buyers to pay battery EMIs based on usage, set at ?3.5 per km. The BAAS approach addresses the high upfront cost of EVs, easing affordability. However, it attracts a higher GST rate since battery rental is classified as a service. JSW MG Motor India has introduced the BAAS model for all of its electric vehicles.
Tata Motors, which commands more than half the passenger electric vehicles market, has recently launched new models Curvv.ev and an extended-range version of Nexon.ev. The Curvv.ev marked the company’s entry in to the highly competitive mid-size SUV segment. Both Mahindra and Tata are launching more lifestyle EVs.
With a fast-growing range of small and mid-sized SUV electric cars and improving range and efficiency, new entrants will face a crowded market.
Govt trying to reboot EV scheme
The government is planning to hold a workshop for companies looking to import premium electric cars at concessional tariffs in a renewed bid to elicit stakeholder feedback on the EV scheme it launched in March, ET reported nearly two weeks ago. The scheme had raised hopes that US electric car giant Tesla would start operations in the country. It, however, elicited a lukewarm response so far, prompting the need for deliberations to ascertain the reasons including whether more sops are needed.
Feedback garnered during the workshop will be considered while framing rules governing the scheme. The rules are still to be finalised. This would be the second round of consultations with the industry. The Centre’s latest step follows the latest US presidential poll that saw Tesla founder Elon Musk work closely with president-elect Donald Trump.
The Scheme to Promote Manufacturing of Electric Passenger Cars in India (SPMEPCI), permitting import of green cars on concessional import duties, had met a key demand placed by Tesla for its India foray — reduced tariffs. However, Musk still appeared to find it not attractive enough as indicated by his cancellation of India visit. With Trump taking over in January as the US President, the US might pressurise India for more concessions for EV companies wanting to come to India. But Indian EV makers are already gearing up to face challenges from Tesla and other big companies planning India foray. If and when Tesla enters India, it will no longer be a virgin territory.
(With inputs from agencies)