Elon Musk's decision to cancel his planned visit to India earlier this year has raised questions about Tesla's future in the country. While India’s new electric vehicle (EV) policy, which offers reduced import taxes for foreign carmakers willing to invest heavily in local manufacturing, initially seemed promising, Musk's recent actions suggest Tesla may not move forward with plans to enter the market. Despite some interest, sources say Tesla has halted communication with Indian officials, citing financial concerns and a challenging global market.
While Tesla hesitates, India's local EV manufacturers are stepping up. Mahindra & Mahindra recently launched its Born Electric range, which includes two new electric SUVs, the BE 6e and XEV 9e. These models are designed to offer an impressive range of 450-500 km per charge and can charge quickly, reducing battery anxiety. With prices starting from ₹18.9 lakh, Mahindra plans to compete not just in India but also internationally, potentially targeting markets like Australia.
Meanwhile, JSW MG Motor India is making waves with its Windsor model, which introduces a "battery as a service" (BAAS) model. This allows buyers to separate the vehicle's cost from the battery, lowering upfront costs. The Windsor's success in October, with 3,116 units sold, shows strong demand for affordable electric vehicles.
Tata Motors, holding over half of India’s EV market share, is also ramping up its offerings with the launch of the Curvv.ev and an extended-range Nexon.ev. These new entries strengthen the competition, as more lifestyle EVs flood the market.
The Indian government is also reviewing its EV policies, considering adjustments after receiving limited feedback on the current import tariff reductions. This comes as the US, under President-elect Donald Trump, may pressure India for additional concessions to attract foreign EV makers like Tesla. However, as local manufacturers like Mahindra and Tata continue to innovate and improve their products, India’s EV market is becoming increasingly competitive, with or without Tesla.
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