New Delhi: Leading global brokerage and financial services firms have lauded India’s evolving electric vehicle (EV) policy, which will help companies like Tesla enter the country seamlessly.
According to Nomura, India’s EV policy will accelerate the adoption of electric vehicles, making it easier for Tesla and other global automakers to invest. The policy change is also expected to expand India’s charging infrastructure, benefiting key suppliers. “EV penetration in cars, which has been around 2 per cent in the past two years, is projected to grow to 5 per cent by FY27 and 9 per cent by FY30,” the report said.
Similarly, the adoption of electric two-wheelers is projected to grow from 5.8 per cent in FY25 to 10 per cent by FY27 and 20 per cent by FY30, according to the report. Domestic auto ancillaries that already export components to Tesla’s US operations could benefit from the additional business.
Meanwhile, global brokerage CLSA said that to expand in the expanding Indian electric vehicle market, US major Tesla would need to manufacture its cars within the country and price them between Rs 25 lakh and Rs 30 lakh. According to CLSA, Tesla would need to set up manufacturing in India to expand with its existing portfolio and “price its vehicles below Rs 3.5-4 million (roughly Rs. 35-40 lakhs) on-road even if import duty is reduced to less than 20 per cent.”
The brokerage further said in its note that Tesla’s entry will not significantly impact domestic companies such as Maruti Suzuki India, Hyundai Motors India and Tata Motors, as EV penetration in India is evolving and there are plenty of growth opportunities.
EV penetration in India is estimated at 2.4 per cent. As Tesla prepares to enter India this year, the government is reported to be working on revising the terms of the new policy to promote manufacturing of EVs in the country. The Centre may also provide further relaxation in import duty.
