By Amitabh Kant: Tata and Mahindra to Challenge Tesla’s Hold in India’s EV Market
Amitabh Kant, India’s G20 Sherpa and former CEO of NITI Aayog, is a strong proponent of India’s rise as a leader in the electric vehicle (EV) industry. Speaking at the second edition of BS Manthan, Business Standard’s premier thought leadership summit, he stated that Indian automakers like Tata Motors and Mahindra will prevent Tesla from dominating the country’s EV market. Kant also underscored the importance of a nationwide shift to electric mobility, urging greater government participation.
“Tatas and Mahindras won’t let Tesla dominate—our local manufacturers offer highly competitive pricing,” Kant remarked. He also shared his personal shift towards electric mobility: “I drive an EV and have just placed an order for a Mahindra EV.”
At the event, Kant highlighted India’s potential to lead in EV manufacturing, especially in the two-wheeler and three-wheeler segments, where the country already holds a strong export advantage. He warned that failing to electrify these categories could result in India losing its competitive edge.
Kant also urged the government to set an example, stating, “Every citizen should transition to an EV. The government should stop purchasing fuel-powered vehicles and take the lead in adopting electric mobility.”
US Exit from UN Climate Pacts: India’s Window of Opportunity
Kant pointed out that the US withdrawing from UN climate agreements presents a strategic opening for India, similar to how China leveraged past shifts in global climate policy to gain market dominance.
“The last time the US stepped away, China seized the moment and now controls 80% of the world’s critical minerals, 78% of the solar energy sector, and 70% of the global EV market,” he explained.
India must not let this chance slip away, particularly in the EV sector, he urged.
Currently, Tesla holds an 11% share of the global EV market, while Chinese automaker BYD leads with 20%, Kant stated. With the right government policies and strong industrial backing, India has the potential to become a major force in the global EV supply chain.
Government’s Role in Driving Economic Growth
While acknowledging the government’s proactive approach, Kant emphasized the urgency of swifter policy execution, particularly at the state level. He commented, “Our economists lean towards communism, and our bureaucrats operate with a socialist mindset.”
He outlined key areas requiring attention:
- India needs to accelerate its growth rate to 8.5-9% instead of the current 6%.
- State administrations should streamline bureaucratic procedures by eliminating outdated regulations.
- Sustainable urban development is crucial, as 46% of India’s workforce remains in agriculture and requires greater industrial and urban job opportunities.
Kant also put forth several critical policy suggestions, including:
- Speeding up implementation of policies at the state level.
- Reforming and simplifying laws to create a business-friendly environment.
- Promoting urban expansion to drive economic progress.
- Empowering the private sector by removing obsolete regulations.
- Broadening the scope of the production-linked incentive (PLI) scheme to foster large-scale domestic enterprises.
Additional Insights on India’s EV Market and Competition with Tesla
- Tesla’s Entry into India
- Tesla has been eyeing the Indian market for years but has faced regulatory challenges and high import duties.
- The Indian government wants Tesla to manufacture locally, rather than importing cars at high tariffs.
- Tesla has requested duty reductions, but the government prefers “Make in India” production first.
- Tata and Mahindra’s EV Plans
- Tata Motors is already the leading EV manufacturer in India, with models like Nexon EV and Tigor EV dominating the market.
- Mahindra has also stepped up its EV strategy, launching XUV400 EV and planning an ambitious roadmap.
- Both companies benefit from government subsidies and local production, keeping their EV prices competitive.
- Challenges in India’s EV Adoption
- Charging infrastructure is still developing, with limited fast-charging stations.
- Battery costs remain high, though they are gradually decreasing.
- Consumer awareness and affordability are key factors affecting EV penetration.
- Comparison of EV Prices in India
- Tata Nexon EV: ₹15-20 lakh ($18,000 – $24,000)
- Mahindra XUV400 EV: ₹16-19 lakh ($19,000 – $23,000)
- Tesla Model 3 (expected price in India): ₹55-60 lakh ($66,000 – $72,000)
