How Tesla can generate $3.6 billion in EV sales in India by 2030

New Delhi:

As Tesla and SpaceX CEO Elon Musk confirms he will visit India for the first time later this month to meet Prime Minister Narendra Modi and announce plans for electric vehicles India is likely to develop into a sizable market in the foreseeable future, generating at least $3.6 billion in revenue by 2030, industry experts said on Thursday.

News of Musk’s arrival in India brought cheers to millions of Tesla enthusiasts in the country after determined Prime Minister Narendra Modi convinced the tech billionaire to consider India as his next country Witnessing stunning economic growth in every quarter. The destination for building Tesla factories and global supply chain systems.

Experts say there is a lot of history and discussion about Musk’s intentions to enter the Indian market.

Soumen Mandal, senior analyst at Counterpoint Research, told IANS: “The list of possible announcements includes tariff reductions for imported Tesla cars in India, the company setting up a formal sales and service presence in the country, and possibly setting up manufacturing further afield. facility.”

The current electric vehicle penetration rate in India is 2.3% and may reach 28% by 2023.

According to the latest industry data, electric vehicles priced around $25,000 (Rs 20 lakh and above) will capture at least 15% of the market by 2030.

“In the long term, India is likely to become an important market for Tesla,” Mandal noted. “With cars effectively becoming supercomputers on wheels, we expect Tesla’s revenue from vehicle sales in India alone to be 25% by 2030.” It could reach $3.6 billion.”

Furthermore, India has the potential to become a manufacturing hub for producing cars priced below $25,000, with opportunities for export to developing and underdeveloped countries.

Additionally, experts say Tesla’s preference to build a Supercharger network could boost India’s EV charging infrastructure, echoing the US automaker’s standardization of the North American Charging Standard (NACS) charging standard.

NACS, also known as Tesla Charging Standard, is an electric vehicle charging connector system developed by Tesla. The system has been used by all Tesla vehicles in the United States since 2021 and will be made available to other electric car manufacturers in November 2022.

Liz Lee, deputy director of Counterpoint Research, said China’s electric vehicle market is about to grow significantly.

“Government initiatives such as the Production-Linked Incentive (PLI) scheme for Advanced Chemistry Cells (ACC) and the recent reduction in import duties on electric vehicles from US$35,000 to 15% will be game-changers,” Lee said.

Meanwhile, car sales in India are likely to grow by 6.3% between 2024 and 2030 from 4.4 million units last year.

According to industry experts, when it comes to electric vehicles, the compound annual growth rate is expected to be a staggering 52% over the same time frame – a “natural progression” for India, as Musk said.

Electric vehicle sales in India are likely to grow by 66% by 2024, driven by rising consumer interest, government initiatives and infrastructure development.

Experts told IANS that Tesla’s presence in India could further stimulate the creation of a supply chain ecosystem “leading to localization of auto component manufacturing”.

They emphasized that this is a clear sign that India’s process of “becoming a major player in the global electric vehicle market” is accelerating.

(This story has not been edited by NDTV staff and is auto-generated from a syndicated feed.)