Tesla Cannot Succeed in India: JSW's Sajjan Jindal

Amid reports on Tesla's imminent entry into India, JSW Group Chairman Sajjan Jindal, whose company is a recent entrant into the automotive sector, expressed skepticism about Tesla's success in India while asserting that the US electric carmaker would not be able to compete with domestic automakers here.

"He [Tesla's Elon Musk] cannot be successful in this country because we Indians are here. He cannot produce what Mahindra can do, what Tata can do. It is not possible. He can succeed under Trump's shadow. He can do well in the US, he is super smart, no question about it... But being successful in India is not an easy job," Jindal said in a recent event organised by CNBC TV-18.

Jindal's remarks underscored his firm belief that Tesla would struggle to establish itself in India against strong domestic automakers. He emphasized the dominance of Indian brands, particularly Mahindra & Mahindra and Tata Motors, which have built a deep understanding of the Indian market and its unique consumer preferences.

Tesla has reportedly finalized an agreement to establish its first showroom in India, marking a significant step in the company's entry into the world's third-largest automobile market. The government is also considering some changes in the proposed domestic value addition (DVA) criteria and the minimum value for imported vehicles in the EV manufacturing scheme that could make it easier for Tesla to import cars at a lower duty.

The Scheme for Promoting the Manufacturing of Electric Passenger Cars in India (SMEC) has proposed to drastically reduce the import duty on certain electric cars to 15% from the current 70-100% for five years, subject to OEMs investing at least Rs 4,150 crore, or $500 million, to Make in India within three years and DVA conditions.

JSW Group's recent entry into the Indian automotive sector, through a strategic 35% stake in JSW MG Motor India joint venture, positions them as a growing force in the burgeoning electric vehicle market. This joint venture with MG Motor India directly challenges established players like Tata Motors and Mahindra & Mahindra.

According to Jindal, these domestic players have an edge in product development, pricing, and adaptability, making it difficult for an international player like Tesla to gain traction in the market here.

While he acknowledged Elon Musk's ingenuity, calling him a "maverick" and "super smart," Jindal highlighted the hurdles that Tesla would face in India.

According to Jindal, Tesla thrived in a different environment and replicating it in India is a challenge due to the regulatory complexities, infrastructure limitations and the price sensitivity of the consumers here.

Despite his skepticism, Jindal did not entirely dismiss the idea of Tesla entering India. However, his statements serve as a stark reminder of the hurdles the American EV giant must overcome if it hopes to carve out a share in one of the world's most competitive automobile markets. With the Indian government pushing for an EV revolution, the battle between Tesla and established Indian brands will be one to watch.