Will Elon Musk-owned EV maker Tesla fail in India? Only …cars sold since debut despite tax cuts
Tesla’s much-hyped India debut has fallen flat, with just over 100 cars sold since July despite more than 600 bookings. High taxes, slow EV adoption and limited charging infrastructure continue to hinder sales, even as rival premium EV makers like BMW, BYD and Mercedes-Benz show strong performance.
Tesla, EV Manufacturer. (File Image)
Since its launch in July this year, Elon Musk’s electric vehicle company Tesla has been struggling. Despite a publicized debut, the EV maker has sold just over 100 cars so far. It is more depressing for the US-based EV manufacturer at a time when its competitor models in the premium category, from brands like BMW, BYD, and Mercedes-Benz, have registered robust sales. The experts of the auto business are perplexed as to why the sales did not pick up despite festive demand and tax cuts over the GST reforms.
Tesla India sales
According to media reports, Tesla received bookings for barely over 600 cars till mid-September. However, only a small fraction of the bookings were converted into real sales. Analysts believe that high taxes and slow adoption remain major barriers to EV growth in India. The steep upfront price of its cars is another challenge for the Elon Musk-owned EV.
Tesla vs BMW BYD Mercedes India
However, Tesla’s India head, Sharad Agarwal, told the BBC that buyers can recoup up to Rs 20 lakh over four years on fuel and maintenance, a third of the price of its Model Y sold here. He said, “Most of the [maintenance] service is done remotely through software updates, which reduces the cost of ownership. And the cost of home charging is one-tenth of petrol prices.”
Tesla home charging in India
The EV market in India is still small, accounting for less than 3% of passenger vehicle sales. Besides, the charging infrastructure has been growing slowly, with only around 25,000 charging stations in the country. An added advantage for Tesla in this regard is that this EV can be charged at home, adding up to 70 km of range per hour. Besides, the company is expanding its network, including superchargers that can deliver about 170 miles in 15 minutes.
