Elon Musk posts two-word confirmation of Tesla's India entry2 min read . Updated: 14 Jan 2021, 06:48 PM IST
- 'As promised', Musk posted on Twitter late on Wednesday night in response to an article
- While the Karnataka government remains tight lipped on Tesla's plans, Musk's confirmation is likely to add to the excitement, anticipation and possibly fuel demand for the EV produced by the company
"As promised", Musk posted on Twitter late on Wednesday night in response to an article headlined 'Tesla Is Preparing for a Robust Entry into India, a Multi-Billion Dollar Market' by tesmanian.com, a website that posts regular updates of Tesla and SpaceX.
Musk had earlier indicated the company's plans to enter India. In December, Nitin Gadkari, the union minister for road transport had said Tesla will enter India in 2021 and will sell cars.
The article details Tesla's entry into India and states that the company is currently in talks with governments of at least five states in the sub-continent to set up sales outlets, research and development facilities and possibly a factory for production as well.
The responses to Musk's post, which has nearly 12000 likes, includes suggestions by people on where the company could set up its factory in India.
Tesla incorporated its India entity in Bengaluru on 8 January and have set up an office in upscale Lavelle Road locality of the city. The company has also named three directors for its India operations that includes the chief executive of xenon automotive and ClearQuote, two startups providing technology-based automotive solutions.
The company is likely to open sales outlets in India that will be followed by an R&D centre, Mint reported this week.
While the Karnataka government remains tight lipped on Tesla's plans, Musk's confirmation is likely to add to the excitement, anticipation and possibly fuel demand for the electric vehicles (EV) produced by the company.
The article by tesmanian.com also argues that India is a good market for Tesla despite the prevailing amount of poverty.
"Many people assume that if most of the country's population is poor, then there is no market for Tesla. However, they need to understand that the company is not aimed at selling cars to the entire population of India. In fact, out of 1.387 billion people, the producer is targeting a smaller (relative to the entire population), but a rather wealthy segment of the population," the article argues.
India is also one of the largest and untapped automobile markets. Of which green vehicles account for less than 1% of the total number of automobiles in the country, presenting a huge opportunity for sustainable transportation companies like Tesla among others.
Ola, a mobility service provider, is setting up the world's largest two-wheeler EV factory in Tamil Nadu with a production capacity of two-million vehicles per year to tap this demand as well as for exports.
Large automobile players like Mahindra, Hyundai,Tata and Hero among others have also made efforts to bring out new EV products to cater to the growing demand.