Tesla’s India Entry: Will It Impact Major EV Players Like Maruti Suzuki, Hyundai, or Tata Motors?
Following Prime Minister Narendra Modi’s meeting with Elon Musk in the U.S., discussions about Tesla entering the Indian market have gained significant momentum. Though Tesla has stepped up its efforts to establish operations, brokerages remain divided on the potential outcomes. The brokerage firm Nomura anticipates that India’s evolving electric vehicle (EV) policy will accelerate the […] The post Tesla’s India Entry: Will It Impact Major EV Players Like Maruti Suzuki, Hyundai, or Tata Motors? appeared first on Trade Brains.
Following Prime Minister Narendra Modi’s meeting with Elon Musk in the U.S., discussions about Tesla entering the Indian market have gained significant momentum. Though Tesla has stepped up its efforts to establish operations, brokerages remain divided on the potential outcomes.
The brokerage firm Nomura anticipates that India’s evolving electric vehicle (EV) policy will accelerate the adoption of EVs, creating a more favourable environment for Tesla and other international automakers to invest.
The policy change is likely to enhance India’s charging infrastructure, providing a boost to key suppliers and auto ancillary firms such as Sansera Engineering and Motherson Sumi Wiring. However, the brokerage is unsure if Tesla will launch an affordable Rs. 21 lakh model, as per reports.
According to Nomura’s report, EV penetration in cars, which has been around 2 percent over the past two years, is expected to rise to ~5 percent by FY27 and reach 9 percent by FY30.
Also read: Stock under ₹70 hits upper circuit after announcing plans to incorporate new subsidiary
However, the global brokerage firm CLSA warns that the market’s enthusiasm surrounding Tesla’s potential entry into India may be overblown.
While a sub-Rs. 25 lakh on-road model could help Tesla capture a significant market share, but the brokerage does not believe it will have a major impact on established players like Maruti Suzuki, Hyundai, or Tata Motors. Instead, Tesla’s arrival is expected to contribute to the premiumization of the auto market in India.
Amidst growing speculation, CLSA stresses that for Tesla to scale up successfully in India, local manufacturing will be crucial. Even with import duties reduced to under 20 percent, achieving a price point under Rs. 35-40 lakh would be difficult without a domestic production facility.
As Tesla continues to refine its strategy for the Indian market, analysts are closely observing its next steps in one of the fastest-growing automotive markets worldwide.
Experts believe that Tesla’s entry into India could provide opportunities for auto ancillary companies as well. Indian suppliers that currently export components to Tesla’s U.S. operations may see increased demand if the company sets up a manufacturing plant in India.
Here are some automobile stocks that are in focus and have seen a rise in share prices today:
Stocks CMP 1-day intraday high return Tata Motors 673.5 0.6% Maruti Suzuki India 12,349 1% Hyundai Motor India 1,797.25 1.2% Mahindra & Mahindra 2,681.75 2%
Written by Shivani Singh
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Dailyraven Technologies or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
The post Tesla’s India Entry: Will It Impact Major EV Players Like Maruti Suzuki, Hyundai, or Tata Motors? appeared first on Trade Brains.
What's Your Reaction?
