Future of Tesla vehicles in India

In the beginning of the year 2021, Elon Musk became the world’s richest person dethroning Jeff Bezos from the top spot. Due to this, a lot of attention has been diverted towards ventures owned by the mogul, most notably Tesla. Tesla is an Electric Vehicle manufacturing company based in California, United States. The company is renowned for its utilisation of Clean Energy to power its vehicles. In July of 2020, Tesla CEO Elon Musk hinted that Tesla would come to India by the dawn of the year 2021.

This turned out to be true after the Union Minister for Road Transport and Highways and Minister of MSMEs Nitin Gadkari notified that Tesla would start its operations in 2021. But this transition is easier said than done. In this article, we would learn about the hurdles that the company has to go through to settle in unknown grounds of India.


Price is a big determinant (sometimes the only) in the choice of the product. A sane person won’t be affording something that is beyond his financial lane. Tesla is likely to enter the Indian markets with Tesla Model 3. The expected value of the car in the Indian market would be around the range of 60 lakh INR. In contrast, a mid-range car in India costs around 6-10 lakh INR. Due to this, a Tesla car (as of 2021) can’t be considered easily affordable by any means.

The price is sort of justified for the features a Tesla car provides, but due to the price tag, the car ends up being a Luxury Item rather than something readily accessible. Therefore, unless the prices get normalized (either due to competition or market conditions) the Tesla cars would be more of an exclusive item, owned by the upper sections of the country.


For proper operations, a Tesla car requires a lot of infrastructural improvements than what is offered as of now. Since the cars are solely powered by electricity, they require Electric Vehicle Charging Stations. As of now, India has 500 Electric Vehicle charging stations whereas the requirement is expected to be around 2500. Therefore, much work needs to be done before the vehicles actually hit the streets. At the current state, India lacks the adequate infrastructure required for proper operations of a Tesla vehicle.


Even though electric vehicles have been around in India for a while, none of them rose to prominence. With the entry of Tesla in the Indian automobile market, things are expected to change. Currently, the automobile sector is populated with vehicles powered by Fossil Fuels. Fossil fuels are the primary source of fuel for vehicles, in most countries. Even though the towering prices and the pollution caused by using fossil fuels are known, they are the de-facto choice.

Things are expected to change once the Tesla cars are introduced to the market. As they are environment friendly (compared to fossil fuel-powered counterparts) and are battery-powered, hence not do not require fuels such as Petrol and Diesel for their working. This will give the customers a choice and would mitigate homogeneity in the automobile sector. But in order to achieve such a revolutionary feat, the company has to overcome major competition posed by the current colossal in the market.


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