Tesla set to enter Indian market as China’s BYD faces scrutiny in the country
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New Delhi: India’s car market will see a dramatic change as Elon Muk’s Tesla is all set to enter the nation, troubling Chinese EV maker BYD’s India dreams.
India is enthusiastic about Tesla’s proposal to invest in the country, while its international rival China’s BYD is facing ‘scrutiny’s by New Delhi, Reuters reported.
Tesla is likely to enter Indian market probably without having to compete with BYD, if Chinese company backs away.
Reuters quoted Jasmeet Khurana of the World Economic Forum saying that ‘The future of who wins in India will have some bearing on who wins globally in the EV race.’
Tesla is holding ‘closed-door discussions’ with Indian officials following Elon Musk’s meeting with Prime Minister Modi in New York.
Tesla is more likely to roll out low-cost EVs priced at $24,000, a rate at which some foreign car are being sold in India. The report further said that PM Modi is personally ‘tracking developments’.
China’s BYD, the world's biggest EV seller, rolling out a total of 1.86 million units, earlier announced $1 billion investment in India. The company, according to the report, is not enthusiastic about the project.
Meanwhile, Indian officials are worried about the possibility of Chinese-made vehicles collecting data threatening national security.
Tesla will have to bring its cost-effective suppliers to India as they cut production costs at its Shanghai factory.
India, reportedly, communicated it willingness to allow Chinese suppliers into the country, provided they partner with local firms as Apple did.
Despite BYD offered partnership with local engineering firms, India reportedly is hesitant about pursuing the deal with the Chinese company.
India’s EV market is currently dominated by Tato Motors with its best-selling Nexon EV priced at $19,000, Tesla will have to take this price in to account when entering the market.