Tesla, following China, is going to conquer the third largest economy in Asia – India. However, Elon Musk’s companies predicted problems related to the demand for his electric vehicles, which may be too expensive for local residents. Bloomberg writes about this.
Musk announced that he is in talks with local officials to open an office, showroom, research center and factory in that country in January 2021. Analysts suggest that the American electric car manufacturer is unlikely to be able to count on large volumes of sales in India.
The fact is that the price of the base Tesla Model 3, made in China, starts at $ 40,960. At the same time, about 75 percent of all car sales in India are for models that cost 10 thousand dollars and below. This is half of that in China and a quarter of the average price in the US.
Overall, electric vehicles account for a very small share of the Indian market – less than one percent of the annual sales of all vehicles. For comparison, in China this figure is about five percent. However, analysts point out that from Tesla’s point of view, it is advisable to develop a country like India even for the sake of a small market share. The population of this country exceeds 1.3 billion people.