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A. Tesla would encounter several obstacles if it were to enter the Indian market. To begin with, Tesla prefers to bring its automobiles to India from China, where production costs are cheap. The Indian government is hesitant to offer China any commercial advantage, citing China's expansionist and military misadventures in Aksai China and Arunachal Pradesh. Second, lowering Tesla's import tariff will encourage international EV companies to demolish Indian EV manufacturers and startups in India. Tata, for example, has previously stated its opposition to such measures as decreasing import taxes on Tesla automobiles will go against India’s plan of boosting local electric vehicle manufacturing.
B. The delay in Tesla’s entry will not affect local EV manufacturing in any way as most local manufacturers see higher import tax on Tesla as an opportunity to boost their business opportunities in the country.
C. The Indian government wants to make India a major manufacturing hub with its Make in India motto. Moreover, Tata is also interested in joint collaboration with Taiwanese semiconductor industries to boost the local manufacturing of chips in India. This will embolden the Indian government to make India a major hub of semiconductor chips, which are widely used in electric vehicles likes electric scooter, electric scooty, electric bikes etc. So, incentives and PLI schemes for EV and battery manufacturers can be announced in the budget scheme.
D. If good terms are reached with Tesla, the government may intentionally make a formal announcement to encourage other foreign EV players to come and make in India.
E. Tesla’s entry into the Indian market may not affect Indian EV manufacturers drastically while there is a possibility that it may hit high-end and luxurious EV manufacturers of India. Sooner or later, everybody wants to explore the vast market of India. Ford did, GM did. They tasted both success and failure in the country and both are gone one.
I must congratulate you all to come this far with AMO Electric Bikes in the journey of Electrifying India. We started this journey with the mission of electrifying India's future with electric vehicles, and we are constantly trying to upgrade and innovate our AMO E Scooty to provide a product that has a remarkable value, a competitive edge, and a good market standing - all of which contributes to empowering the consumers.
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