Speaking at the Ernst & Young ‘Entrepreneur Of The Year’ awards, JSW Group Chairman Sajjan Jindal asserted that Tesla’s entry into India’s electric vehicle (EV) market will be challenging. Jindal believes that Tesla and its CEO, Elon Musk, will face stiff competition from domestic players like Tata Motors and Mahindra & Mahindra.
Market Dynamics and Competition
Mahindra & Mahindra and Tata Motors are already well-established in the Indian market, with significant sales volumes. In the April 2024-February 2025 period, Mahindra & Mahindra dispatched a record 503,439 units. Tata Motors, although facing a decline in February 2025, still holds a strong position. The competition is intense, with both companies vying for market share.
Tariffs and Policy Environment
Tesla’s entry into India is further complicated by the country’s high import tariffs. Currently, the import duty for cars priced over $40,000 is approximately 110%, while vehicles priced below this threshold attract a 60% duty. The Indian government has recently lowered the import tariff on EVs that cost more than $40,000 to 70% from 100%, but this is still a significant barrier. The US is urging India to eliminate tariffs on car imports as part of a proposed trade deal, but New Delhi remains cautious about an immediate reduction to zero.
JSW Group’s EV Ventures
JSW Group, led by Jindal, is actively exploring opportunities in the EV segment. JSW MG Motor India, a joint venture with China’s SAIC Corp., recently showcased several new energy vehicles, including electric and plug-in hybrids, at the Bharat Mobility Global Expo. This move highlights JSW’s commitment to sustainable transportation and its strategic efforts to diversify its portfolio in the rapidly growing EV market.
Tesla’s Pricing and Market Position
Tesla’s vehicles are positioned in the premium segment of the EV market, with the cheapest model priced around $35,000. This is significantly higher than India’s average car ASP of $14,000. Even with reduced import duties, Tesla’s on-road pricing in India would remain higher than that of mass-market EVs from Indian automakers.
Conclusion
Sajjan Jindal’s comments reflect the reality of the Indian EV market, where domestic players have a strong foothold and the government’s policy environment poses significant challenges. While Tesla’s entry into India is highly anticipated, the road ahead is fraught with difficulties. High tariffs, strong domestic competition, and an evolving policy environment mean that Tesla will have to adapt quickly to succeed in India.
