As Tesla prepares to make its mark in India, Sajjan Jindal, chairman of JSW Group, has raised doubts about the company’s chances of success in the country. Speaking during the Ernst & Young ‘Entrepreneur Of The Year’ awards panel discussion, Jindal expressed his belief that Tesla will face tough competition from domestic players like Tata Motors and Mahindra & Mahindra.
“Elon Musk is not here. He is in the US,” Jindal pointed out. “We Indians are here. He cannot produce what Mahindra can do, what Tata can do—it’s not possible. He can do (it) under Trump’s shadow, in the US. He’s super smart, no question about it. He’s a maverick, doing spacecraft and all that. He’s done amazing work, so I don’t want to take anything from him. But to be successful in India is not an easy job,” he said, acknowledging Musk’s achievements but emphasizing the challenge of entering the Indian market.
Jindal, who also works with Chinese automaker SAIC for MG Motor, has ambitious plans of his own. He aims to launch his own electric vehicle brand and is confident about its success, stating, “I’m putting my heart and soul into the auto business, and I’m 100% sure it will be super successful; there’s nothing that can stop me. This country needs a huge amount of autos, huge amounts of good quality stuff.”
Tesla’s India Entry: Retail and Recruitment Plans
Tesla has already finalized a lease for a showroom in Mumbai’s Bandra Kurla Complex, with plans to open it in February 2025. This 4,003 square foot space will be located next to an Apple store in Jio World Drive, a property owned by Reliance Industries. Tesla has also begun recruiting staff for various positions in the country, though it remains tight-lipped about the possibility of local manufacturing, which could pose a challenge due to high import duties on electric vehicles in India.
Domestic Competitors Gear Up
Tata Motors and Mahindra & Mahindra are strengthening their positions as Tesla’s entry into India looms. Tata Motors, India’s leader in electric vehicles, has already sold 200,000 EVs and continues to offer various customer benefits. Meanwhile, Mahindra’s Anand Mahindra expressed confidence in staying competitive, drawing parallels to India’s economic reforms in 1991 when foreign automotive companies entered the market.
US Push for Zero Tariffs
In the background, the US government is pushing India to eliminate duties on car imports as part of a two-way trade deal. However, India is hesitant to reduce import levies, which can go up to 110%, despite pressure from Tesla and the US administration. These tariffs have previously hindered Tesla’s plans to launch in India, despite the country’s status as the third-largest automotive market globally.
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