The electric vehicle (EV) landscape in India is rapidly evolving, and while global giant Tesla remains on the fence about entering the market, domestic players Mahindra and Tata are making significant strides to shape the future of EVs in the country.
With new models and advanced technologies on the horizon, Indian manufacturers are gearing up to take on the challenges that Tesla may bring—if and when it finally enters India. This growing competition comes as Tesla’s CEO, Elon Musk, has recently distanced himself from India, citing concerns over the country’s policies and market conditions.
Tesla’s India journey has been anything but smooth. Elon Musk, now one of President-elect Donald Trump’s closest allies, holds a position that could influence U.S. policy, which has potential ramifications for India’s EV market. Despite initial excitement about Tesla’s plans for India, the company’s interest seems to have cooled considerably, particularly after India announced a new EV policy in April.
Musk had initially planned a visit to India to meet with Prime Minister Narendra Modi, but cancelled the trip, citing urgent business matters at Tesla.
The new EV policy, which lowers import duties on electric vehicles for companies willing to invest heavily in local production, seems to have failed to attract Musk’s attention. Tesla was expected to be one of the major beneficiaries of these tariffs, but Musk’s team, which had been in talks with Indian officials, reportedly ceased communication.
According to sources, the company has faced capital constraints and is not planning fresh investments in India at this time.
Tesla's global setbacks, including a second consecutive decline in quarterly deliveries, and fierce competition in China, have contributed to its reluctance to enter the Indian market. Despite these challenges, Elon Musk’s relationship with U.S. politics and business remains a powerful factor in shaping future decisions regarding Tesla’s international expansion.
While Tesla remains undecided, India’s domestic EV manufacturers are stepping up their efforts to fill the gap in the growing electric car market. Companies like Mahindra & Mahindra (M&M) and Tata Motors are pushing the boundaries of innovation, offering high-performance electric vehicles that are increasingly challenging traditional internal combustion engine vehicles.
On the 26th of November, Mahindra unveiled its much-anticipated Born Electric range, which includes the BE 6e and XEV 9e electric SUVs. Both vehicles are based on the ‘INGLO’ platform, a cutting-edge design that provides enhanced cabin space and optimizes battery technology for greater efficiency.
These electric SUVs offer impressive ranges of 450-500 kilometers per charge and fast-charging capabilities that allow drivers to achieve a 20-80% battery charge in just 20 minutes.
The starting price for the BE 6e is Rs 18.9 lakh (ex-showroom), with an on-road price of around Rs 20.36 lakh. With a range of upcoming models, Mahindra is also eyeing international markets like Australia, where it could take on Tesla’s offerings.
Tata Motors, which already dominates the Indian electric vehicle market, has introduced new models to solidify its position. The Curvv.ev, a sleek mid-size SUV, marks Tata’s entry into a highly competitive segment. Tata has also launched an extended-range version of its popular Nexon.ev. With more than half of India’s EV market share, Tata is actively expanding its EV lineup to cater to a growing customer base that is increasingly moving toward electric mobility.
One of the most innovative moves in India’s EV sector comes from JSW MG Motor India. The company has introduced a unique "battery as a service" (BAAS) model for its electric vehicles. This allows customers to separate the vehicle’s cost from the battery price and instead pay for battery usage through EMIs based on kilometers driven, priced at ₹3.5 per kilometer.
This novel model has made MG's Windsor the top-selling green car in October 2024, outpacing even popular models from Tata and Mahindra. This solution not only makes EVs more affordable by reducing upfront costs but also addresses concerns regarding the high price of EVs in the Indian market.
The Indian government is not sitting idle, though. It is planning to rework the electric vehicle (EV) import scheme to make it more attractive to global players like Tesla. A workshop will be held to gather feedback from stakeholders, including Tesla, in a bid to revise and improve the current policies. This renewed interest comes after the U.S. presidential election, where Elon Musk worked closely with Donald Trump.
The Scheme to Promote Manufacturing of Electric Passenger Cars in India (SPMEPCI) aims to reduce tariffs on imported green cars, but Tesla’s reluctance to commit to India has raised questions about its long-term interest. The Indian government is keen on further revisions, possibly increasing concessions to entice foreign investment.
While Tesla's entry into the Indian market remains uncertain, it is clear that Indian EV manufacturers like Mahindra, Tata, and MG Motor are positioning themselves for the future. As India continues to develop its EV infrastructure and policies, the competition will only intensify, and when Tesla does decide to make its move, it will no longer find a virgin territory.