Elon Musk Planning to take Tesla to India in 2017
Tesla Motors has majority of its clients in the United States but the electric cars made by Elon Musk’s company have fans all over the world. Tesla CEO Elon Musk has informed that he plans to take Tesla vehicles to India this year. Tesla might be interested in taking small steps in one of the fastest growing automobile market by entering India. India offers massive potential but consumers in India are conscious about cost. If Tesla can offer its vehicles in an acceptable price range, it can generate good business in India.
However, Tesla’s problem isn’t low volume of orders. Tesla’s main bottleneck in terms of growth in the ability to meet current demand for its vehicles. Additionally, Tesla is innovating at much faster pace compared to automobile sector in general. Tesla has improved its capacity in the recent quarters and the deliveries have improved. Entering Indian market has its own challenges.
We should also understand that Musk loves to face challenges and he has been successful in dealing with difficult times. In India, Tesla will be booking pre-orders for its low-cost Model 3. Last year, Musk had announced that Tesla will be launching nationwide supercharger network in India.
Tesla will have to manufacture its vehicles in India in order to save in terms of taxes. Indian government could also offer tax discounts for its green vehicles but India has traditionally offered lowered subsidies compared to rest of the world.
Musk has strong following on Twitter and in technology sector in general. His company doesn’t spend money on marketing as people are always looking out for anything new from Tesla. In a fashion quite similar to Apple, Tesla has a fan following and the company manages to keep its marketing costs very low compared to other automobile manufacturers.
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