Latest posts by TheStartupMojo (see all)
- Introduction to Entrepreneurship - March 20, 2018
- Paytm Debit cards will now be delivered via App. Paytm to touch $14 Bn GMV - January 19, 2018
- Angel List started their Syndicates Platform in India - January 17, 2018
Since the tweet of Elon Musk, where he confirmed to launch Tesla on Indian roads in the last summer of this year 2017, there has been a silence over the developments. Tesla Motors is now looking forward to execute their entry in India through single – brand retail route.
Why a single brand retail route?
Tesla is planning to put Lithium cell and an assembly plant to cater to Indian consumers. However putting up a plant is a cumbersome process and may involve months, till then in order to avoid import duties on luxury automobiles, the company has applied for a single brand retail license which includes mandatory sourcing of up to 30% of the value of goods sold in the country.
This is an interim process to start the sale of Tesla cars in India till we see a fully functional plant assembling Tesla cars in India. Elon Musk confirmed the news with his tweet stating ‘temporary relief on import penalties/restrictions until a local factory is built.’
Tesla is keen on, in entering India and the company’s has raised post IPO equity investment of $1.2 Bn to fund Model 3 launch in India. Also the company, on many occasions have clearly stated to consider India and China as the two most important countries to propel productions for Tesla and above all need an Electric Vehicle Revolution to contain environment pollution through automobiles.
Speaking on the development, earlier the company’s top executive and Chief Information Officer Jay Vijayan said that “the country’s high import duty remains abig obstacle. Tesla is working on its third-generation car, a smaller and affordable four-door sedan code named Tesla Model 3 — to target emerging markets like India. Our target price for Model 3 is in the range of $30,000 to $40,000 (approx Rs 18-24 lakh) that makes it an ideal product in the luxury car segment.”