Elon Musk, the richest man in the word on January 13 confirmed Tesla's entry in India. According to a Tesmanian blog post that was the reason Musk responded on India plans of Tesla Inc., mentioned that it is yet to decide India base.
Asia's third biggest economy, India is lagging behind Electronic Vehicle market while it is China that has taken the lead. Outside of US, Tesla had set up its first factory in China.
Electric Vehicles account for 5% of China's annual car sales and it less than 1% in India according to Bloomberg. According to experts, China is said to race ahead of other countries in the EV segment.
International Energy Agency says that 60% of slow and fast charging spots across the world are in China. India is still lagging behind despite efforts. India launched Faster Adoption and Manufacturing of Hybrid and EV Plan (FAME) in 2015.
According to International Energy Agency, as per FAME, India committed Rs 900 crore for subsidies while the second generation of FAME program was even bigger with rs 10,000 crore as per an article in The Economic Times.
India lowred GST from 12% to 5% on EVs. China, if compared, has great plans. State Grid Corp of China committed to spend $416 million on charging station in 2020 and China's Southern Power Grid also planned to spend 25.1 billion Yuan on the charging infrastructure.
According to the article published in The Economic times, the potential customers of Tesla won't be benefitted in India as far as costs are concerned. Moreover, there is a need to seriously chart out best policies that will benefit customers as well as the manufacturers in the EV segment.