Elon Musk's strategic move in China secures Tesla’s growth while India could be its next big market; KNOW why

Elon Musk navigates India-China rivalry alongside securing Tesla's future in his recent meet-up in China. Concessions from both nations set the stage for the EV revolution in India.

Published on May 02, 2024  |  04:50 PM IST |  24.5K
Elon Musk secures Tesla's growth in both China and India
Elon Musk secures Tesla's growth in both China and India (Picture Credit: X)
Key Highlight
  • Musk strategically prioritizes China, securing concessions critical for Tesla's growth
  • India reveals EV policy, enticing global players like Tesla

Elon Musk, the man behind Tesla and SpaceX, recently played peacemaker between India and China, using their rivalry to his advantage. Skipping a meeting with Prime Minister Narendra Modi in favor of an audience with Chinese Premier Li Qiang unsettled both nations and secured major concessions for his companies.

China’s win in India

While India dangled an attractive electric vehicles (EV) policy to woo Musk, China granted tentative approval for Tesla to deploy advanced driver-assistance features. For Tesla, winning concessions in its second-biggest market was more important than trying to crack the complexity of India's market. 

With competition heating up in China’s EV sector, it has become imperative for Tesla to secure a revenue stream there.

Elon Musk secures Tesla's growth in both China and India (Picture Credit: X)

China’s coup and India’s gambit

Musk’s maneuvering benefited not only Tesla but also both China and India. For the Middle Kingdom, which faces economic headwinds at home, it was a chance to burnish its image as an investment destination of choice globally. 

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India saw Tesla’s investment promise as a way to entice other global automakers, such as Jaguar Land Rover and Vinfast, and potentially remake its auto industry landscape ahead of the U.S. company's arrival.

Tesla’s challenges in India

India is full of obstacles for Tesla despite being such a potentially lucrative market for electric vehicles (EV). The yawning gap between China's EV dominance and barely existent sales in India illustrates just how hard it will be for Elon Musk's company. 

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On top of that comes fierce competition from domestic producers on price points; few government incentives or charging stations make life even more difficult. 

Elon Musk secures Tesla's growth in both China and India (Picture Credit: X)

To succeed here then means making cars affordable while building them close by. But designing models specifically suited to local tastes around limited infrastructure could yet prove key too.

Tesla’s prospects in India

However, many of these challenges may be true though I believe they can all be overcome given enough time, effort, money etc.. If this happens then everything will change once again like before but different this time. 

Elon Musk’s calculated moves within an India-China contest have set Tesla up for possible success in India. It is a transformative alliance waiting to happen, one that could not only transform India's automotive sector but also expand Tesla’s global presence as the company explores investment opportunities in India.

ALSO READ: Elon Musk announces Tesla's plans to allocate USD 10 billion this year on training and inference AI

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FAQs

Why did Elon Musk prioritize China over India?
China offered crucial concessions and a thriving market, essential for Tesla's revenue stream.

What challenges does Tesla face in India?
Fierce competition, cost pressures, and minimal incentives pose hurdles, requiring Tesla to prioritize affordability and localization.

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About The Author

Shovan has a Masters in Mass Communication and Journalism degree from Calcutta University. He loves to live in the

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