Elon Musk, the current Chief Executive Officer of Tesla, is nothing if not transparent. His business and personal endeavors are general knowledge for the public, and reporters do not have to look far to get a juicy story. Another benefit of Musk’s communication habits is that he almost always announces his plans well in advance of conception. From space travel to business operations in foreign countries, Musk draws interest in his upcoming projects by giving the public sneak peeks beforehand.
India’s Automotive Market
One of the main challenges for moving into a new market is the preliminary research. It can be difficult to know how a new company, product, or concept will be received in a foreign country. India is not exactly uncharted territory, but the automotive industry can be a risky venture in any new market. Gauging demand is vital because incorrect conclusions could result in a significant loss of profit as well as potentially jeopardize future business prospects. Tesla and other companies vying for new business opportunities continue to explore the benefits of the Indian marketplace. Ample land availability and the potential for reliable infrastructure increase India’s appeal for many new industries.
Automotive Battery Facility
Rather than moving immediately into the automotive industry within India, Tesla has decided to approach a different strategy. The common practice for many automobile manufacturing companies is to break ground within new countries via sales. Importing vehicles for sale in a new territory helps manufacturers determine if there is a suitable level of interest in a particular market to warrant further investment. With the ever growing number of electric and hybrid auto makers, the number of battery facilities also continues to increase.
Government Expected to Support Developments
After a series of meetings and proposals for a range of battery facilities throughout India, it now appears that this project may finally have the green light. Tesla is not the only company considering the placement of battery facilities in new countries. Other manufacturers have realized the benefits of global expansion, moderately priced labor, and flexible tariffs that are potentially available in India. Terms are still being negotiated, and other locations are certainly preparing their own sales pitches, but India remains a lucrative investment opportunity.