[SedanGuy]

From a customer standpoint, I agree that we get world class options at reasonable price points. What does that mean to the OEMs who are caught unaware of this sudden move.

Indian OEMs face ungodly taxes, and if customers shift to Teslas and other overseas OEMs. What does that mean to Indian jobs? I really feel that Indian OEMs need to do better to be able to compete with global manufacturers but they have been handicapped by the taxes and the stupid 4 mtr rule. These rules have capped Indian OEMs from building global cars. There should be some kind of advantage to Indian OEMs to begin with until they catch up on the competition.

[McLaren_P1]

Originally Posted by Hayek

Think the Trump reciprocal tariff threat may be a blessing in disguise for India. The reality is that the auto industry operates on very narrow margins - barely 4-5% in most cases. Even a 25% tariff therefore gives you protection equivalent to 5x normal profits. If you are so horribly incompetent and inefficient that you need so much protection to survive, you don’t deserve to do so. The current 100% tariffs are therefore de facto bans - which only serve to make Indian companies lazy, incompetent and fat. A lower tariff and more imports will make our companies more competitive - and may lead to a situation where 10 years from now, they are capable of competing in developed markets.

China also has huge import duties, CBU imports aren’t really viable there - despite this, Chinese brands are amongst the most competitive in the world today, in terms of cost and other factors.

I feel there’s more to making automotive companies competitive than just opening up a market.

[ZenMaster]

Originally Posted by Hayek

The reality is that the auto industry operates on very narrow margins - barely 4-5% in most cases. Even a 25% tariff therefore gives you protection equivalent to 5x normal profits. If you are so horribly incompetent and inefficient that you need so much protection to survive, you don’t deserve to do so. The current 100% tariffs are therefore de facto bans - which only serve to make Indian companies lazy, incompetent and fat. A lower tariff and more imports will make our companies more competitive - and may lead to a situation where 10 years from now, they are capable of competing in developed markets.

Long post alert!

The reason why Indian companies can't seems to make money is because of insane amount of Taxes and the Sub-4 metre rule.

While larger vehicles are much cheaper abroad when compared to India, Smaller vehicles which most of us buy is sold at almost 50-60% the price a similar car commands in the international market. The reason why its cheaper is because 80% of our market cannot afford more expensive vehicles due to our low per capita income. (I haven't considered the rich people here).

Take the case of the Jimny for example: at 15-17lakh we call it overpriced while its considered a cheap vehicle at a starting price of around 25 lakhs in the export markets.
Whenever a car is sold in India, its the government that makes the most money. If you do all the calculations its downright cruel how much our govt. taxes vehicles (including Manufacturing, purchase and usage) all the while its the largest industrial job provider in our country.

If Companies are operating at razor thin margins even when Indian Engineers and Factory workers are paid 30-40% the salary of their counterparts working in western countries and much less than their Chinese counterparts, then we need deep introspection from all the parties most importantly the govt.

Engineering a "small car" for a cheap price is much more difficult than engineering an expensive vehicle with blank cheque R&D budgets.

Chinese industry is a completely different beast. Anybody thinking that the Chinese advantage still comes from "cheap labour" needs to delve a lot deeper. They are no longer the cheapest workers anymore(compared to India). Instead the Chinese Industry is just the most advanced now "beyond our understanding". Their true superpower is their Supply Chain Management and their Army of highly intelligent and educted engineers supported with huge R&D budgets along with huge govt support, very less red-tape and bureaucracy (w.r.t entrepreneurship/ businesses) and a govt that is willing to do whatever it takes to come out on top.

They manufactured expensive goods cheaply for decades for advanced western markets while learning (by hook or crook) how advanced countries innovated and then implemented it in their homeland and has now improved upon it while in India we depended on obsolete hand-me-down tech from others to manufacture cheap goods for ourselves inneficiently with little to no money put into R&D.

[458]

The tesla wow factor and charm has worn off over the years, the model s has been in the market for more than a decade, and the novelty factor is just not relevant anymore with advanced Chinese EVs at rock bottom prices.

Tesla's entry into India is too little too late.

[aashishnb]

I think in today's times, tariffs have more to do with the 'value added' locally, thereby boosting the economy as against whether local manufacturing is more or less efficient.

In big items (by volume), the government can control by tariffs much better than small items (like gold, where tariffs give rise to smuggling).

[Bluengel180]

The current CEO's ideology aside people seem to forget the Tesla's are notoriously bad when it comes to basic QC, quality of parts and service.

They are still struggling with all these issues in their home country and Musk doesn't seem to be interested in investing anything in India apart from basic sales channels. So expect support to be substantially worse.

Globally Tesla's were aspirational because of the ideology they represented, which no longer exists because of the actions of its founder. No wonder sales are tanking everywhere.

There would be no wow factor if I see a Tesla on Indian roads, will just wonder why the money wasn't spent on more reliable and india friendly options from the domestics,koreans and even BYD.

[volkman10]

Originally Posted by 458

--
Tesla's entry into India is too little too late.

Originally Posted by Bluengel180

--

Globally Tesla's were aspirational because of the ideology they represented, which no longer exists because of the actions of its founder. No wonder sales are tanking everywhere.

There would be no wow factor if I see a Tesla on Indian roads, will just wonder why the money wasn't spent on more reliable and india friendly options from the domestics,koreans and even BYD.

+1, but the Government thinks otherwise.

IMO, Tesla is just looking to import as CBU's as of now and not likely commit to manufacturing.

[Mustang Sammy]

Originally Posted by Hayek

Having driven both the Tesla Model 3 and the Mahindra EVs, I must say the Mahindra vehicles are far better on interior quality, and feel while driving. So let Tesla come in and reduce tariffs that BYD faces - it is good for the customer, and will force Tata and Mahindra to become fit to take on the world.

Couldn’t agree more. The Tesla models 3 and Y both feel CHEAP when you sit in them. They reek of cost cutting. Mahindra and Tata are miles ahead in terms of interiors.
Now if they would only make their vehicles run more reliably.

[Ashwathama]

Originally Posted by Bluengel180

Tesla's are notoriously bad when it comes to basic QC, quality of parts and service.

Totally agree with this. I have been following MKBHD’s Tesla reviews over the years and they have here and there.

I don’t know which Tesla is going to come at 21L as stated by the media because the cheapest Tesla out there is the Model 3 which will cost around 35L after all the taxes, maybe higher. At this price I would really consider a top end BYD Atto 3 or just bump up my budget slightly and go for the BYD SEAL which in my opinion is way better than the Model 3. If just incase BYD are able to work it out with the government and drop the taxes from 70 to 15% then for me it’s a no brainer to go with the BYD Seal. That car even after 70% taxes feel so much value for money. Plus the fit n finish, interiors, performance and overall experience is just phenomenal. Their 2025 model has a LiDar sensor in front which will help in autonomous driving and auto parking. So the edge Tesla has with autonomous driving is also going to be a thing of the past. Also, tracking of LiDar sensors is just superb, they track the surroundings directly in 3D over the current ADAS used in Tesla and other cars where multiple cameras are used to take multiple 2D images and create a 3D image. It’s simply more faster and accurate. For Indian roads where there are so many undulations and foreign objects appearing out of anywhere, a LiDar scanner is going to do wonders to help achieve the ADAS we actually need.

[Asish_VK]

Originally Posted by 458

The tesla wow factor and charm has worn off over the years, the model s has been in the market for more than a decade, and the novelty factor is just not relevant anymore with advanced Chinese EVs at rock bottom prices.

Tesla's entry into India is too little too late.

+1
I think Tesla may sell few cars initially (including celebrities) because of the novelty factor. But as you said, due to the availability Chinese EV's and Indian EV's (like the upcoming Mahindras and TATAs) with a VFM price tag and long advanced feature list, general public will not prefer Tesla cars.

Unless they bring something specific for markets like India (read VFM), they are going to sink.

[SmartCat]

If Tesla is selling 1.8 million EVs a year worth $100 billion, mostly in developed countries, we have to assume that these cars have a strong brand/product pull factor. It is very odd to assume that Indians will find Tesla too old or boring or of poor interiors/quality. As if Indians are discerning connoisseurs of absolute best of the best consumer products.

Regarding comparison with Chinese EVs that are on sale or will be on sale in India, Tesla just hit record high sales (650,000 units) in China in 2024. How many car companies or consumer products can do that in China?
https://www.reuters.com/business/aut...er-2025-01-03/

Regarding U-turn of India regarding EV Imports:

There is no change in stance of India regarding imports. What India has erected now is called non-tariff barrier
https://en.wikipedia.org/wiki/Non-ta...riers_to_trade

Non-tariff barriers to trade are trade barriers that restrict imports or exports of goods or services through mechanisms other than the simple imposition of tariffs. It is any obstacle to international trade that is not an import or export duty. They may take the form of import quotas, subsidies, customs delays, technical barriers, or other systems preventing or impeding trade"

India's barrier now is not import duty, but lots of fineprint (Rs. 4000 cr investment, turnover requirements etc). So manufacturers who want to take advantage of the new policy have to make investments in setting up production in India. Else, it is close to impossible to meet these minimum requirements. If targets are not met, very likely EV brands will have to pay penalties equivalent to full 110% import duty on already imported/sold cars

[ninjatalli]

Originally Posted by SmartCat

If Tesla is selling 1.8 million EVs a year worth $100 billion, mostly in developed countries, we have to assume that these cars have a strong brand/product pull factor. It is very odd to assume that Indians will find Tesla too old or boring or of poor interiors/quality. As if Indians are discerning connoisseurs of absolute best of the best consumer products.

Regarding comparison with Chinese EVs that are on sale or will be on sale in India, Tesla just hit record high sales (650,000 units) in China in 2024. How many car companies or consumer products can do that in China?
https://www.reuters.com/business/aut...er-2025-01-03/

That's hardly worth bragging when you compare it to BYD. BYD reported ~1.76 million EV sales in 2024 just in China. Key point to remember - BYD sales overtook Tesla sales only back in Q3'24. If one looks at Q4'24 or Q1'25 (YTD) EV sales for China, Tesla is lagging and sales are going down month-on-month. The 'solution' was a cheaper Tesla option which was binned last year. If BYD and the lot are able to work they way around tariffs and other constraints, this story is going to get repeated in all other developed nations within a year or two. (1, 2)


Majority (>80%) of Tesla's sales are in countries where it has an excellent supercharger network.
1. US - 2,500 (North America ~2,800)
2. China - 2,200 (Asia ~2,800)
3. EU - ~1,350
How many are there (or planned) in India?


Let's not get too excited about Tesla sales (in India) until they plan to expand their charging network in India too. It might see a strong start as many Tesla fans would want to buy it; or for something to brag about or for the bling factor. Eventually, without the charging infra investments, all we'll be seeing is Tesla becoming another option for luxury EV cars. We know what's the sales numbers for those are like.

[1.2TSI7DSG]

Tesla duty cut is contradictory to the long term policy that we are trying to achieve.

If we really want Tata, M&M, MS, HMIL to succeed with manufacturing/value addition in India, we shouldn't have agreed to the duty cut.

That said, I am amused by the claims that Tesla's pricing will start at 21 lakhs. Realistically even if you take the USA pricing, it would start at approx 38/40 l.

[shimoo]

Tata and Mahindra have really upped their game. I have no doubts that they will be competitive with the best. When liberalisation happened, all the Indian manufacturers had similar worries, but eventually that became the catalyst that made Tata and Mahindra global players today.

I don't see why things will be different this time around. If you think this will kill Indian players, you are either seriously underestimating them or seriously overestimating Tesla(or both).

In my opinion, this will be a new chapter of growth for the Indian auto industry. There will be growing pains, but I have no doubts that the Indian Auto Industry will do whatever it takes to out-compete. Have some faith, people

[volkman10]

Tesla sales crash in Europe, as its CEOs controversies spark backlash:

- Tesla sales crash 45% in Europe as rivals surge

- The company registered only 9,945 cars in January, down from 18,161 a year ago

- Tesla registered only 1,277 new cars last month in Germany, its lowest monthly total since July 2021. Sales in France plummeted 63% in its worst showing there since August 2022.

- The company also registered fewer vehicles than China’s BYD Co. for the first time ever in the UK.

Link: