Even as American electric car major Tesla announced it is set to start its operations in India next year, an analyst said expectations of an electric vehicle (EV) boom in the country need to be tempered for a “good amount of time”.
“Tesla’s entry in India is a big thing as far as making India a global hub for manufacturing EVs. However, its proliferation is expected to take a good amount of time as neither Tesla nor India is ready for EV infrastructure. It will take establishing a wide network of vendors, software infrastructure, R&D, testing etc for its further development though the company is set for its Indian debut in 2021,” said Ashwin Patil, Senior Research Analyst at LKP Securities.
Tesla Inc. co-founder and chief executive Elon Musk had in October said the company will enter the Indian market in 2021.
“American auto major Tesla will have its distribution facility (sale centres) for its cars in India from next year and considering the demand it would look into setting up of manufacturing here. India has the potential to become the largest EV (electric vehicle) producer in the world in the next five years,” Gadkari told PTI.
Pricing of the Tesla vehicle will not be a threat to the existing automakers, said Patil.