Tesla, perhaps the biggest name in the domain of electric vehicles around the world, is betting big on the market for such vehicles in India. There are several reasons as to why it is so. First of all, it is compelled to do so because of the competition that it is facing. James Dyson, who has invented a bag-less vacuum cleaner, has proclaimed that his company would build an Electric Car that is supposed to be introduced in 2020. NorthVolt AB, whose founder worked at Tesla at one point in time, is in the process of building a lithium-ion battery.
This battery would bring down the cost of storing power by as much as 50 percent. Upon building them NorthVolt would supply these to all companies with the exception of Tesla.
The scale of this market in India
It is expected that by 2020 the market for automobiles in India would be the third biggest in the world. This is evident from the estimates done by Ernst & Young, and JD Power. It is expected that by that year India would account for 8 percent of the entire passenger vehicle market of the world as opposed to 4 percent in 2010-11.
It is expected that by that year the demand for passenger vehicles around the world would be in the region of 108 million units. Half of this demand is expected to emanate from Asia, Africa, and Pacific region. It is also expected that by 2020 there would be 10 million units in the passenger vehicle market of India. The government of India is also looking to sell only electric vehicles from 2030 onwards and as such it could play into the hands of companies such as Tesla. This is because such push would allow it to have access to a huge market.
The government has already started to take concrete steps in this regard and is also letting one and all know that it is doing so. In fact, this is also one reason why Tesla is venturing into the Chinese market. If it gets the necessary permission from the national government over there it would be able to put millions of such cars on the road since it would basically work without any opposition. In fact, the way Nitin Gadkari has issued a stern warning in this regard also bodes well for the company.
To finish it up
If the government is willing to cooperate then it could mean policies that work in its favor. This means that even in case Tesla was to face a serious threat in the United States of India (USA) it would have access to the markets in India and China that would together be bigger than the USA market. The International Energy Agency (IEA) estimates that by 2030 the need for a global stock for such vehicles would increase by around eight times. By then India would be compelled to sell at least 10 million such cars. In 2015 there were around 1.3 million such cars on the road.