New Delhi, Feb 24 Global brokerages and financial services majors have hailed India’s evolving electric vehicle (EV) policy which would help companies like Tesla to enter the country in a seamless way.
According to Nomura, India’s EV policy will fast-track electric vehicle adoption, making it easier for Tesla and other global automakers to invest.
The policy shift is also expected to expand India’s charging infrastructure, benefiting key suppliers.
“EV penetration in cars, which has been around approx. 2 per cent over the past two years, is set to increase to approx. 5 per cent/9 per cent by FY27/FY30F,” said the report.
It is projected to grow to 5 per cent by FY27 and further to 9 per cent by FY30.
Similarly, the adoption of electric two-wheelers (2Ws) is predicted to rise from 5.8 per cent in FY25 to 10 per cent by FY27 and 20 per cent by FY30, according to the report.
Domestic auto ancillary companies that already export components to Tesla’s US operations could benefit from additional business if Tesla establishes an Indian plant.
Meanwhile, global brokerage CLSA said that in order to scale in the expanding Indian electric vehicle (EV) market, US major Tesla will need to manufacture its cars within the country and price them in the Rs 25 lakh-Rs 30 lakh range.
According to CLSA, Tesla would need to establish manufacturing in India to scale up with its current portfolio and "price its vehicles at less than Rs 3.5-4 million (around Rs 35-40 lakh) on-road, even if import duties are reduced to sub-20 per cent levels".
The brokerage further said in its note that Tesla's entry would not have any significant impact on domestic players like Maruti Suzuki India, Hyundai Motors India and Tata Motors, as penetration of EVs in India is evolving and offers plenty of growth opportunities.
India's EV penetration stands at an estimated 2.4 per cent.
As Tesla gears up to enter India this year, the government is reportedly working on modifying the terms of a new policy that promotes the manufacturing of EVs in the country. The Centre may also offer further import duty relief.
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