Sajjan Jindal, the chairman of the Jindal Group, has expressed doubts about the success of Elon Musk’s Tesla in the Indian market. Jindal, who is also the owner of the ONGC Videsh Sands, believes that Tesla, the world’s most valuable company, will not be able to replicate the success of Maruti Suzuki (M&M) or Tata Motors, India’s leading automakers.
Jindal’s skepticism stems from the fact that electric vehicles (EVs) are not yet popular in India, and the country’s infrastructure is not yet conducive to widespread adoption. He also highlighted that Tesla’s business model is based on the US market, where there are already established charging infrastructure and a large number of EV owners. In contrast, India has limited charging points, and most consumers are still not familiar with electric vehicles.
Musk’s Tesla is expected to enter the Indian market through a partnership with Singapore-based-derived startup, Droom, which currently operates an e-commerce platform for electric vehicles. The partnership is expected to invest $104 million in India to set up a manufacturing plant, but Jindal’s remarks have raised concerns about the viability of the venture.
In related news, real estate rates in Mumbai’s Bandra-Kurla Complex (BKC) have been rising sharply, with Tesla reportedly paying Rs 35 lakh (approximately $48,000) per month for a showroom in the area. This has sparked speculation about the company’s plans and strategy for the Indian market.
Despite Jindal’s skepticism, there are many who believe that Tesla can still succeed in India, citing its success in China and China’s vast pool of consumers. Additionally, India’s new government policies, such as the FAME II (Faster Adoption and Manufacturing of Hybrid and Electric Vehicles) scheme, aim to encourage the adoption of electric vehicles in the country.
In conclusion, while Sajjan Jindal’s doubts about Tesla’s success in India are valid, there are many who are optimistic about the company’s prospects in the Indian market. The answer lies in the company’s ability to adapt to the Indian market and address the infrastructure and consumer acceptance issues that Jindal has highlighted.