News Analysis 

Tesla Motors India and Energy Private Limited was set up on January 8, 2021, with the location of registration in Bangalore, Southern India. At the initial stage, it will rely on selling electric vehicles as its primary business. Going forward, it will determine whether it should expand investments in view of market responses, including prospects such as the setting up of manufacturing and assembly plants, or R&D centers.

Impact Analysis 

As early as 2016, the Indian government had already set out the goal of prioritizing electric cars in the next decade, with the hope that the proportion of electric car sales will account for 100% of its domestic sales of vehicles, by 2030. However, Modi government was forced to revise its original plan and announced the goal would be cut from 100% to 30%, as the sales were not going as well as expected. Even with the adjusted goal of 30%, 2030 is only 10 years away, and achieving the new target will be a challenging task, considering that, in 2019, the proportion of electric vehicles sold as new cars, was less than 1% in India. This is also the case in other countries around the world; the rate of uptake of electric vehicles has been slow.

Since Tesla has been a benchmark company for electric vehicles in recent years, and coupled with the rapid growth of its sales volume, the news of their presence in Bangalore will indeed be helpful for achieving the Indian government’s goal. Besides this, the arrival of Tesla in the region also offers proof that the local government remains the most assertive in promoting the transformation of automobiles. Also remembering the fact that India has the fifth-largest automotive market in the world, and this scenario can be quite positive and conductive for the development of the electric vehicle industry.