Tesla’s India Entry Unlikely to Disrupt Domestic Automakers: CLSA
Global brokerage firm CLSA has assessed that Tesla’s entry into the Indian electric vehicle (EV) market is unlikely to significantly impact established automakers such as Tata Motors, Maruti Suzuki, and Hyundai. According to CLSA, the current EV market in India is relatively small, accounting for just 2.5% of annual car sales, and Tesla’s premium pricing strategy may limit its market share.
Additionally, domestic manufacturers have been strengthening their positions by investing in local production and expanding their EV portfolios. For instance, Tata Motors plans to increase its EV offerings and is investing in local battery manufacturing to reduce costs and enhance supply chain integration.
Similarly, Maruti Suzuki has announced plans to install fast charging points across India’s top 100 cities to address infrastructure challenges and encourage EV adoption.
These strategic initiatives by domestic players are expected to maintain their competitive edge, even as Tesla enters the market.
