Tesla announced as early as 2017 that it wanted to enter the Indian market, because India is a large country with a population of 1.3 billion, with a very large consumption potential, and the population of India's rich people is also very impressive, many internationally renowned brands, want to occupy the Indian market, Tesla is no exception, but the Indian market did not respond. After several years of communication, Tesla's entry into the Indian market is still inconclusive. Why is it so difficult for Tesla to enter the Indian market? Today Xiaobian will give you an analysis.
The main reason is that India's tariffs on imported cars are very high, such as cars below 250,000 yuan, India's tariffs have been levied to 60%, that is to say, the mainland's 250,000 yuan of cars in India to sell 400,000 yuan, and more than 250,000 yuan of cars, India actually has to levy 100% tariffs. Tesla does not have a car below 250,000 yuan, which means that Tesla wants to go to the Indian market, or it will create a low-priced car suitable for the Indian market, or it will be levied a 100% tariff by India, and the products to India will be twice the original product. With such tariffs, even if Tesla enters the Indian market, it is also a loss of money, such a result, Tesla will certainly not accept.
Why doesn't India lower tariffs on imported cars to allow Tesla to enter the Indian market? Because India imposes high tariffs on imported vehicles to protect the local auto manufacturing industry. At present, the best sales in India are local brands Mahinda and Tata, and the joint venture brand is Maruti Suzuki. India is worried that reducing auto tariffs will greatly impact local brands. Tata Motors is the car with the highest market share in India and has raised $1 billion to prepare for the transition to new energy sources, so India will definitely give priority to protecting local brands.
Secondly, India requires Tesla to build a factory in India in order to reduce tariffs, and refuses to buy Tesla cars imported from China, and Tesla does not agree. In fact, Musk said that if India can reduce tariffs and Tesla has good sales performance in India, it can consider building a factory, but the Indian side is unwilling to make compromises. In fact, India does not have a complete production chain for the production of electric vehicles, and many parts of new energy vehicles in India are also imported from the mainland. India insists that Tesla build a factory first mainly because it wants to learn Tesla's production technology. India's main purpose is to increase its country's market share in new energy vehicles and avoid becoming a dumping ground for foreign new energy vehicles in the future because of backward technology. However, their country's policies cannot attract new energy vehicle manufacturers to build factories.
According to relevant data, only 5,000 new energy vehicles were sold in India the year before, so although the Consumption Potential of the Indian market is large, it is still unknown whether Tesla can open the Indian market, which is also the reason why Musk is reluctant to build a factory first. Moreover, India's infrastructure supporting construction is also a problem, and the charging stations in India are only 100, which greatly restricts the long-distance travel of new energy vehicles. Even if India builds infrastructure in the future, energy supply is a big problem. As we all know, India is a very lack of electricity, the situation of electricity theft is also frequent, the power equipment is relatively backward and seriously aging, these reasons are bound to affect Tesla's sales, which Musk is afraid of. Therefore, he will not easily agree to build a factory in India.
In fact, seeing that India wants Tesla to build a factory in China, it is easy to think of the win-win cooperation between the Chinese market and Tesla. It is only the situation of win-win cooperation that it is necessary to ensure that their domestic enterprises have developed to a certain extent, and there must also be policy preferences and infrastructure guarantees to form. India should understand that if it wants to develop an industry, it must first master core technologies and technologies in order to be invincible. You must recognize your limitations and work hard to change in order to get out of the predicament.