5 hurdles Tesla and the buyers will face in India? Is India ready for Tesla?

Tesla Model 3


Tesla Model 3
Tesla Model 3

Elon musk CEO of Tesla Inc replied to a tweet saying ” Hoping for this summer” when asked about Teslas Model 3 launch in India. This might be exciting news for people wanting to Own a Tesla. Elon musk announced that they will be expanding to India, Brazil, New Zealand and Ireland back in April 2016.

People like Vijay Shekhar Sharma, Mahesh Murthy, Vishal Gondal and many more already in line for their Tesla Model 3, there are quite a few hurdles that Tesla might have to face in India.

Here are few Hurdles Tesla and its owners Have to jump in India.

1. Pricing and Target Audience:

With a Price tag of 35000 USD (23.5 Lakhs approx.) Tesla falls under the category of Luxury Cars as per the Govt of India, buyers have to pay additional 1% Luxury Tax on all the cars costing more than 10 Lakhs along with the Import Duties. The demographic that Tesla is going to target will be the affluent class, who most probably own a luxury car or two. With a Population of more than 1.3 billion, there are approximately 7 people who own a car out of 1000. Most of the cars sold fall under the budget category as shown in the graph below.

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Car sales in india Graph

Will Tesla Stick with its niche of rich buyers? or will it reduce the cost by limiting its features? we just have to wait and see.

 2. Lack of Infrastructure:

Tesla Charging station

We all know that Tesla cars run on electricity and they promise a 300 km range on a single charge. But imagine a situation where you have to be on road for a couple of days and you run out of charge, what will you do?
Tesla stated that they are planning to expand their charging stations from 3600 to almost double that throughout the world. As of now, most Tesla buyers will probably charge their cars at home. unlike china where the sales of Electric vehicles are through the charts compared to other markets, there are no state-owned charging points in India. Even though the government has shown intent in promoting Electric vehicles there is not enough infrastructure available.

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 3 & 4 . Road regulations and traffic:

With Features like auto pilot and Lane correction as some of its biggest selling points apart from being a battery operated car, it would be a shame if we don’t utilize these features to their full potential. But it won’t be likely that we use these features when driving in densely populated cities like Mumbai. As shown in the CEAT Ad there are people who risk their life just to cross the road. Indians don’t really care for traffic rules and use of these features is highly unlikely.

India also has the worst road access control in the highways and Expressways. Expressways make up only 942 Km of the Indian National Highway System. The National Highway Development Project is underway to add an additional 18,637 Kilometers of expressway to the network by the year 2020. Let’s hope that no green Judges (NGT) orders a stay.

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5. Environmental Concerns:

Vehicular pollution

Think about this, Tesla runs on electricity so it will help our environment. Electricity in India is mainly produced through Non-Renewable sources as of now causing more Damage to the environment. So, if you ditch your existing car and buy a Tesla to help our Nature you are actually causing more damage. It takes lot of mining and uses materials to build battery and body of Tesla 😉

Lets hope the buyers keep in mind befor making the purchase.