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Tesla and SpaceX CEO Elon Musk confirming his first-ever India visit to meet Prime Minister Narendra Modi

The news of Musk arriving here brought cheer to millions of Tesla lovers in India, after a determined PM Modi convinced the tech billionaire to look at the country — which has been witnessing stupendous economic growth across quarters for the past decade — as his next destination to build a Tesla plant and a global supply chain system.

According to experts, there’s a lot of history and talk about Musk’s intentions to enter the Indian market.

“The list of possible announcements includes India providing duty cuts on imported Tesla cars, the company establishing an official sales and service presence in the country, followed by possible manufacturing facilities further out,” senior analyst Soumen Mandal from Counterpoint Research said.

The current EV penetration in India is 2.3 percent, which is likely to reach 28 percent by 2023.

The electric cars priced around $25,000 (Rs 20 lakh and above) will have at least a 15 percent market share by 2030, according to the latest industry data.

“India could grow into a considerable market for Tesla in the long term. As cars effectively become supercomputers on wheels, we anticipate Tesla could achieve $3.6 billion in revenue from car sales in India alone by 2030,” Mandal noted.

Moreover, India has the potential to become a manufacturing hub for producing cars in the sub-$25,000 price range, with opportunities for export to developing and underdeveloped nations.

Additionally, said experts, Tesla’s preference for establishing its supercharger network could catalyse the growth of India’s EV charging infrastructure, mirroring the standardization seen with US automakers adopting the North American Charging Standard (NACS) charging standards.

Also known as the Tesla charging standard, NACS is an EV charging connector system developed by Tesla. It has been used by all Tesla vehicles in the US since 2021 and was opened for other EV automakers in November 2022.

According to Liz Lee, Associate Director at Counterpoint Research, the country’s EV landscape is about to see a significant rise.

“Government initiatives such as the production-linked incentive (PLI) scheme for Advanced Chemistry Cells (ACC) and the recent reduction in import duties on EVs under $35,000 to 15 percent are game changers,” Lee said.

Meanwhile, car sales in India are likely to grow at a compound annual growth rate (CAGR) of 6.3 percent between 2024 and 2030 from 4.4 million units last year.

According to industry experts, when it comes to EVs, the CAGR is expected to touch a staggering 52 percent in the same time frame — a “natural progression” for India as noted by Musk.

In 2024, India’s EV sales are likely to grow 66 percent, driven by rising consumer interest, government initiatives, and infrastructure development.

Experts told IANS that Tesla’s presence in India could further stimulate the establishment of supply chain ecosystems, “leading to the localisation of automotive components manufacturing.”.

It is a clear sign that India’s journey to “become a major player in the global EV market is accelerating,” they emphasised.

About Editor in chief

Ashok Palit has completed his graduation from Upendranath College Soro, Balasore and post graduation from Utkal University in Odia Language and literture.. He has also carved out a niche for himself as a scribe of eminence after joining the profession in 1988. He is also an independent media production professional. He brings loads of experience to Advanced Media, Ashok Palit as a cineaste has been active in film criticism for over three decades. As a film society activist, he soared to eminence for his profound commitment to the art film appreciation and aesthetics of cinema. His mode of discourse is often erudite but always lucid and comprehensible marked by a perfect acumen so rare in the field. A film aesthete with an immense fond of critical sensibilities, he wrote about growth and development of odia cinema in New Indian Express, The Times of India, The Hindustan Times, The Asian Age and Screen. He has been working as an Editor for Cine Samaya from 2002-2004.. He had made solid contribution on cinema in many odia Dailies and weekly such as Samaj, Prajatantra, Dharatri, Samaya, Satabadi, and weekly Samaya.
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