At the Ernst & Young Entrepreneur of the Year awards, JSW Group Chairman Sajjan Jindal questioned Musk’s chances, stating that Indian EV leaders Tata Motors and Mahindra & Mahindra are too deeply entrenched for Tesla to displace.
Tesla’s long-awaited entry into India is finally taking shape, with the company securing a showroom in Mumbai’s Bandra Kurla Complex (BKC) and hiring for key roles. The five-year lease, beginning in February 2025, will cost Tesla approximately $446,000 in the first year, increasing by 5 per cent annually. Hiring efforts are also underway for store managers, service staff, and customer engagement roles. However, not everyone is convinced of Tesla’s ability to thrive in India.
Jindal: ‘Musk Can’t Do What Tata and Mahindra Can’
Jindal expressed his scepticism, highlighting Musk’s lack of local presence and the strength of Indian automakers. “Elon Musk is not here. He is in the US,” he remarked. “We Indians are here. He cannot produce what Mahindra can do, what Tata can do—it’s not possible. He can do (it) under Trump’s shadow, in the US. He’s super smart, no question about it. He’s a maverick, doing spacecraft and all that. He’s done amazing work, so I don’t want to take anything from him. But to be successful in India is not an easy job.”
Jindal, whose company has a joint venture with Chinese automaker SAIC under the MG Motor brand, is also working on launching a fully owned EV business. “I’m putting my heart and soul into the auto business, and I’m 100 per cent sure it will be super successful; there’s nothing that can stop me. This country needs a huge amount of autos, huge amounts of good quality stuff,” he added.
India’s EV Tariffs: Tesla’s Biggest Challenge
A major hurdle for Tesla’s entry into India is the country’s steep import duties. Currently, fully assembled imported EVs attract tariffs exceeding 100 per cent. Musk has repeatedly criticised these duties, arguing that they make Tesla’s vehicles prohibitively expensive for Indian buyers.
The US government has been pushing India to lower car import duties as part of a trade deal, but Indian authorities remain cautious. New Delhi is promoting its domestic EV manufacturing through the Scheme to Promote Manufacturing of Electric Passenger Cars (SMEC), which allows foreign companies to import EVs at a reduced 15 per cent tariff—provided they commit at least $500 million to local production.
This policy is designed to attract foreign investment, but Indian automakers argue that it places domestic players at a disadvantage. The government is considering an on-tap facility that would allow companies like Tesla to test the market before committing to full-scale production.
Tata Motors and Mahindra Brace for Tesla’s Entry
India’s leading EV manufacturers are not sitting idle. Tata Motors, which dominates the market with a 62 per cent share, recently celebrated 2 lakh EV sales by offering incentives such as exchange bonuses, 100 per cent financing, and free charging perks.
Meanwhile, Mahindra & Mahindra’s Chairman Anand Mahindra has expressed confidence in his company’s ability to compete. Drawing a parallel to the 1991 economic liberalisation that brought global carmakers to India, he stated,“We have not just survived, but we continue working like maniacs to remain relevant even a century from now. With your support, we will make it happen.”
Mahindra’s latest electric models, the XEV 9e and BE 6e, have received a positive market response, further solidifying its position in the EV race.
Tesla is expected to enter the Indian market as early as April 2024, initially importing cars from its German plant. However, its success is far from guaranteed. With high import duties, strong domestic competition, and an evolving regulatory landscape, Tesla will need to navigate multiple challenges to establish itself in India.
