Tata-Mahindra will remain in India's EV market, Tesla and byd will be filled with thorns

Last updated:March 07, 2025, 17:48 IST

There are difficulties for Tesla, Byd and other foreign companies in India's EV market. Tesla's cars are expensive and India's policies are becoming a hindrance for Chinese companies. Indian companies are in a strong position and …Read more

JSW Group Chairman Sajjan Jindal has said two days ago that Alan Musk cannot make things that can make Tata and Mahindra… because he is in America and we are in India. Jindal also said that Tesla is not going to be a challenge for any company in India. Keep in mind that JSW Group itself is preparing to launch its EV brand. Meanwhile, a report has come that foreign companies will not get much success in the near future in India's passengers vehicle (PV) sector. According to the ANI report, it can be difficult for companies like Tesla and Byd to enter the Indian market. Similarly, new companies like Winfast and JSW MG will not be able to affect much.

In this report, four such main reasons are given-
First- India's strict EV (electric vehicle) policy.
Second- Ban on investment of Chinese companies.
third- EV's low demand in the country (only 2% market share).
Fourth- Long time taken in local production setup (about 4 years).

What are the challenges in front of Tesla in India
Tesla's cheapest car model 3 is about $ 30,000 (about 25 lakh rupees) in the US, while most of the cars in India are sold for less than Rs 20 lakh. In addition, other models of Tesla such as models Y, model S and model X are quite expensive, making it difficult for ordinary Indian customers to buy them.

According to a report, Tesla's expensive prices, high import duty rates and priorities of Indian customers are creating difficulties for this company. Even if Tesla launches an affordable car, he will still get a tough competition from Indian companies.

Difficulties of investment in front of Chinese companies
Strict foreign investment rules of the Government of India are a big challenge for Chinese companies. Companies like byd and Mg (now JSW Mg) are having problems due to these restrictions. The MG Motor's share in the Indian market is only 1.5 per cent, mainly due to the obstacles in investment and focusing only on electric vehicles.

In addition, FDI from China needs special permission in India, which is approved under the PN3 process. Because of this, it is not easy for Chinese companies to dominate the Indian market.

Winfast's plan in India
According to the Economics Times report, Vietnam's company Vinfast is planning to set up a plant by investing $ 500 million in Tamil Nadu. This plant plans to produce 50,000 trains annually and plans to launch VF6 and VF7 electric SUVs by the end of 2025. However, the company's financial position is weak and its share price has fallen by 80%, which has raised questions on its long term future.

India's EV policy and market boundaries
Under India's new EV policy, import duty on expensive cars from $ 35,000 (about 30 lakh rupees) has been reduced to 15 per cent, but this discount is limited to only 8,000 vehicles. Only 45,000 vehicles are sold annually in the premium segment and Toyota's dominance is more than 80 percent. As such, it will be difficult for new brands to make a place in the market.

Confidence of Indian auto companies
Rajesh Jejurikar, CEO of Auto and Farm sector of Mahindra & Mahindra, said that Indian companies do not need to fear any foreign brand. He challenged and said, “If they can come and make affordable vehicles like us in India, then definitely make it. It will be interesting to see whether they can compete with us even after local production. ”

Mahindra Group Chairman Anand Mahindra also expressed confidence that Indian companies are ready to face global competition. He said, “When the Indian market was open in 1991, the same question was asked how we will compete with foreign companies. But we were still there and will continue. “