You are on page 1of 26



Submitted by GROUP 2:
Aditya Srinivasan
Ayushi Thakur
Karan Lalchandani
Kaushal Sood
Radhika Damani
Shiwami Sharma

We have taken Tesla motors for this assignment to see its potential in India when the entire
country is riding high on the Swach Bharath mission with motos like clean India. We as a
group think its the ideal time for Tesla motors to set shop in India.
Tesla is a path breaking electric vehicle manufacturer which has taken the automobile world by a
storm. Breaking away from the century old gasoline powered cars it produced an electric car
which outpaced the traditional car in every aspect possible.
Tesla produces premium electric cars for the affluent, with India having the third largest number
of multi-millionaires in the world, Tesla cars have a promising market in India and hence we are
analyzing the true potential of the product and how Tesla as a brand has to promote itself in
Tesla is not the present but its the future, we are looking at a brand which is going to be part of
our future and play a vital role in it.

It like our Jetsons (A famous Cartoon network show on the future) dream has finally come true.


Tesla Motors was founded in 2003 by a group of engineers in Silicon Valley who wanted to
prove that electric cars could be better than gasoline-powered cars. With instant torque,
incredible power, and zero emissions, Teslas products would be cars without compromise. Each
new generation would be increasingly affordable, helping the company work towards its
Mission: to accelerate the worlds transition to sustainable transport.
Teslas engineers first designed a powertrain for a sports car built around an AC induction
motor, patented in 1888 by Nikola Tesla, the inventor who inspired the companys name.
The resulting Tesla Roadster was launched in 2008. Accelerating from 0 to 60 mph in 3.7
seconds and achieving a range of 245 miles per charge of its lithium ion battery, the Roadster set
a new standard for electric mobility. Tesla would sell more than 2,400 Roadsters, now on the
road in more than 30 countries.
In 2012, Tesla launched Model S, the worlds first premium electric sedan.
Built from the ground up to be 100 percent electric,
Model S has redefined the very concept of a four-door car.
With room for seven passengers and more than 64 cubic feet of storage,
Model S provides the comfort and utility of a family sedan
while achieving the acceleration of a sports car: 0 to 60 mph in about five seconds.
Its flat battery pack is integrated into the chassis and sits below the occupant cabin,
lending the car a low center of gravity that enables outstanding road holding and handling
while driving 265 miles per charge.
Model S was named Motor Trends 2013 Car of the Year and achieved a 5-star safety rating
from the U.S. National Highway Traffic Safety Administration.
In late 2014, Tesla CEO Elon Musk unveiled two dual motor all-wheel drive configurations of
Model S that further improve the vehicles handling and performance.
The 85D features a high efficiency motor at the front and rear, giving the car unparalleled
control of traction in all conditions.

The P85D pairs a high efficiency front motor with a performance rear motor for supercar
acceleration, achieving a 0 to 60 mph time of 3.2 seconds the fastest four-door production car
ever made.
Now with more than 50,000 vehicles on the road worldwide, Tesla is preparing to launch
Model X, a crossover vehicle that enters volume production in 2015.
Featuring exhilarating acceleration, falcon wing doors, and room for three rows of seating,
Model X defies categorization.
Tesla owners enjoy the benefit of charging at home so they never have to visit a gas
station or spend a cent on gasoline.
For long distance journeys, Teslas Supercharger network provides convenient and free
access to high speed charging, replenishing half a charge in as little as 20 minutes.
Superchargers now connect popular routes in North America, Europe, and Asia Pacific.
Teslas vehicles are produced at its factory in Fremont, California, previously home to New
United Motor Manufacturing Inc., a joint venture between Toyota and General Motors. The Tesla
Factory has returned thousands of jobs to the area and is capable of producing 1,000 cars a week.
The company is expanding its manufacturing footprint into other areas, including in Tilburg,
the Netherlands, where it has an assembly facility, and Lathrop, California, where it has a
specialized production plant.
To reduce the costs of lithium ion battery packs, Tesla and key strategic partners including
Panasonic have begun construction of a gigafactory in Nevada that will facilitate the production
of a mass-market affordable vehicle, Model 3.
By 2020, the gigafactory will produce more lithium ion cells than all of the worlds combined
output in 2013. The gigafactory will also produce battery packs intended for use in stationary
storage, helping to improve robustness of the electrical grid, reduce energy costs for businesses
and residences, and provide a backup supply of power.
Tesla is not just an automaker, but also a technology and design company with a focus on energy


The insignia of Tesla Motors as

seen on a Tesla Roadster Sport

Tesla Motors
incorporated in
by Martin
Eberhard and
who financed
the company
until the Series
round of

roles in the company's early

prior to Elon Musk's
involvement. Musk led the
of investment in February
Tesla's Board of Directors as

played active
Series A round
2004, joining
its Chairman.

Tesla's primary goal was to

electric vehicles, starting
premium sports car aimed at
and then moving as rapidly
more mainstream vehicles,

early adopters
as possible into

Musk took an active role

product design at a detailed
not deeply involved in dayoperations; Eberhard
that Musk was the person

level, but was
to-day business
who insisted

from the beginning on a carbon fiber body and he led design of components ranging from the
power electronics module to the headlamps and other styling.
In addition to his daily operational roles, Musk was the controlling investor in Tesla from the
first financing round, funding the large majority of the Series A capital investment round
of US$7.5 million with personal funds.
From the beginning, Musk consistently maintained that Tesla's long-term strategic goal was to
create affordable mass market electric vehicles. Musk received the Global Green 2006 product
design award for his design of the Tesla Roadster, presented by Mikhail Gorbachev, and he
received the 2007 Index Design award for his design of the Tesla Roadster.
Musk's Series A round included Compass Technology Partners and SDL Ventures, as well as
many private investors. Musk later led Tesla Motors' Series B, US$13 million, investment round
that added Valor Equity Partners to the funding team.
Musk co-led the third, US$40 million round in May 2006 along with Technology Partners.
Tesla's third round included investment from prominent entrepreneurs including Google cofounders Sergey Brin &Larry Page, former eBay President Jeff Skoll, Hyatt heir Nick
Pritzker and added the VC firms Draper Fisher Jurvetson Capricorn Management and The Bay
Area Equity Fund managed by JPMorgan Chase.
The fourth round in May 2007 added another US$45 million and brought the total investments
to over US$105 million through private financing.
In December 2007, Ze'ev Drori became CEO and President. In January 2008, Tesla fired several
key personnel who had been involved from the inception after a performance review by the new
CEO. According to Musk, Tesla was forced to reduce the company workforce by about 10% to
lower its burn rate, which was out of control in 2007.
The fifth round in February 2008 added another US$40 million. Musk had contributed US$70
million of his own money to the company by this time. In October 2008, Musk succeeded Drori
as CEO. Drori became Vice Chairman, but then left the company in December.
By January 2009, Tesla had raised US$187 million and delivered 147 cars. On May 19, 2009,
Germany's Daimler AG, maker of Mercedes-Benz, acquired an equity stake of less than 10% of
Tesla for a reported US$50 million. In July 2009, Daimler announced that Abu Dhabi's Aabar
Investments bought 40% of Daimler's interest in Tesla.
In June 2009 Tesla was approved to receive US$465 million in interest-bearing loans from
the United States Department of Energy. The funding, part of the US$8 billion Advanced
Technology Vehicles Manufacturing Loan Program, supports engineering and production of the
Model S sedan, as well as the development of commercial powertrain technology.

The low-interest loans are not related to the "bailout" funds that GM and Chrysler received, nor
are they related to the 2009 economic stimulus package. The loan program was created in 2007
during the George W. Bush administration. Tesla repaid the loan in May 2013.
Tesla was the first car company
while Ford, Nissan and Fisker had not.







The company announced in early August 2009 that it had achieved overall corporate
profitability for the month of July 2009. The company said it earned approximately US$1
million on revenue of US$20 million. Profitability arose primarily from improved gross margin
on the 2010 Roadster, the second iteration of Teslas award-winning sports car. Tesla, which like
all automakers records revenue when products are delivered, shipped a record 109 vehicles in
July and reported a surge in new Roadster purchases.
In September 2009, Tesla announced an US$82.5 million round to accelerate Tesla's retail
expansion. Daimler participated in the round to maintain equity ownership from its initial
Tesla Motors signed a production contract on July 11, 2005, with Group Lotus to produce
"gliders" (complete cars minus powertrain). The contract ran through March 2011, but the two
automakers extended the deal to keep the electric Roadster in production through December
2011 with a minimum number of 2,400 units, when production ended, mostly because of tooling
changes orchestrated by one of its suppliers. In June 2010, it was reported that Tesla sold a total
of US$12.2 million zero emission vehicle credits to other automakers, including Honda, up to
March 31, 2010.
In October 2014, both Daimler and Toyota sold their holdings of Tesla shares.

Parent Company

Tesla Motors


Electric Vehicles



Tagline/ Slogan

Burn rubber not gasoline


Ability to build fully electrically powered

vehicles in house


People looking for electric premium

sports/luxury cars

Target Group

Rich and Affluent who are willing to spend

more compared to other vehicles


Pure electric drive but still sporty & luxurious


Chevrolet Volt

Toyota Prius

Smart Car

Toyota Rav4 Hybrid

Honda Civic Hybrid

Aiming premium products at affluent "thought leaders" is a very well-known business strategy in
Silicon Valley and the global technology industry, where prices for the first versions of, for

example, cellular phones, laptop computers, and flat-screen televisions start high but drop with
subsequent products as the technology matures and production volumes increase.

According to a blog post by Musk, "New technology in any field takes a few versions to
optimize before reaching the mass market and in this case it is competing with 150 years and
trillions of dollars spent on gasoline cars."




It will Show them being ahead of the curve; go

green by driving a Tesla.


The Tesla will meet the performance needs and

without worrying about the environmental impact.




Showing their fans they care

environment by driving a Tesla.



Showing the commitment to environmental

sustainability extends beyond business by driving a

1.They developed 1st fully electric sports car The

2.Also a strong supplier to other manufacturers like




technological expertise in the area of

electric transmissions & drive train

4.Ability to

develop vehicles completely in house

including the sub-assemblies required

5.Their current platform developed for Model S has

the ability to be used for their future crossover
model or any other model they envision



they fully develop the vehicles including

their sub-assemblies this leads to higher costs of
production as economies of scale are not achieved

2.The prices of their products are higher than their

competitors who sell combustion engine powered

1.The growing support by governments across the

globe for environmentally friendly vehicles in form
of exemptions from duties & other support


2.Supports the Mercedes Smart car, which can lead

to learning which will help them with their
passenger cars which they plan to launch in near

3.Improvements in the quality control processes can

reduce these costs drastically

1. Tesla wants to be able to produce, distribute &

sell its cars to average which seems difficult to
achieve due to their current business model




Their strategy for pricing (skimming) has not

been used so far in the auto industry


years i.e.
of masses

are currently competing against a

which has been in use for over hundred
the combustion engines& also their
may take time for being optimal for use

We have identified India is one of the potential markets in Asia to have a local assembly
plant, but we need a definite policy from the government to support electric vehicles in the
future,"- Vijayan, CIO at Tesla Motors.
The most interesting thing about Tesla the niche luxury electric car maker is the role of
marketing in selling electric cars that cost $100,000 or more. Many people have tried to change
the auto industry over the last 40 years and none have succeeded. The process of buying a car is
essentially the same as it was a generation ago. And the process has remained unpopular for
decades: the typical car dealer receives just 2 or 3 stars on Yelp.

Tesla Model S and Tesla Roadster: Tesla has figured out how to market an electric car
Tesla is creatively using marketing to upend the auto industry business model:

There are no Tesla dealers

There are no commissioned sales people
Tesla cars are marketed and not aggressively sold
Tesla transactions are conducted online
The price is the price: no negotiation
There is no inventory: the Tesla Model S is built to order
You cant test drive a Tesla unless you put down a $5,000 deposit


In many parts of the country, you cant see or drive the car before you buy even if you
place a deposit
You have to wait in line for months or years to get a car

And the marketing challenges are incredibly difficult:

They are building a new luxury brand from scratch

They are evangelizing a new type of vehicle: an electric car
They are selling a $60,000 $100,000+ car that cant go on a road trip
They must sell an entirely new model of buying and owning a car

While Tesla is starting with expensive vehicles, they clearly have mainstream ambitions. They
are investing to build a big car company. How hard is it to build and sell cars in the USA? Look
at it this way: Tesla is the second oldest publicly traded auto company in the United States
behind Ford. GM went bankrupt and went public four months after Tesla. Chrysler remains
private following its own reorganization.
While Tesla has a long way to go to be profitable, producing cars in volume, and moving
towards the mainstream, their first home-built product the Model S is a success. They have

10,000 20,000 orders and have swept the auto industry awards, winning the most recent round
of Motor Trend, Automobile, and Yahoo Autos awards for car of the year. Tesla is the first startup
car company, and the Model S is the first electric car, to win these awards.
(1) Start with a great product Tesla would be dead today if they didnt build the best car
available today. There are too many obstacles range, lack of road trips, and buyer confusion to
name a few. Tesla used electric technology to build a car that cant be reproduced with a
combustion engine. Its as fast as a Porsche and gets the equivalent of 100 miles per gallon. It
has very few moving parts. It is the most aerodynamic car made and has the most cargo space of
any car in its class. Its a sports car that seats seven.
(2) Start high and work your way down its a lot easier to build a lust-inducing $100,000
car than a cheaper model. Tesla started with the $100K plus roadster built on a modified Lotus
platform. With the Model S, they started with production of $100K vehicles and are working
their way towards the $60K entry-luxury models. By starting high, Tesla is letting early adopters
fund technology development. As volume increases, prices are coming down. The early super
cars are media darlings endlessly discussed in waves of free Tesla publicity.
(3) Turn auto industry strengths into weaknesses historically, luxury cars have been sold
and justified based on the quality of their engineering. Most luxury automobile companies tout
performance through engineering as the one thing that makes them special and desirable. Tesla
marketing focuses on performance through technology while touting the simplicity of the
platform. The Tesla Model S pitch reframes the auto industry strength as a weakness. Through
the highly-effective Tesla marketing lens, traditional gas cars are dirty, complex, unreliable, and
difficult to maintain. In a bold marketing move, Tesla service centers are designed with white
floors to reinforce that electric cars dont have oil and other dirty fluids that leak on the floor.

The Tesla power train is marketed as simple, reliable, and effective.


Traditional luxury auto makers focus on engineering Through the Tesla marketing lens,
educated viewers see complexity, maintenance, and antiquated technology

Tesla Service centers have impractical white floors to highlight that the cars run clean without
messy oil and fluids
(4) Create a new multi-channel model: Tesla decided not to build a traditional car dealer
network. Nobody likes car dealers: even buying and servicing a high-end car like a Porsche is a
dreadful experience. Tesla looked at the car buying process and optimized its sales model to fit
the way people buy cars today. Since people start online, Tesla designed their process around
online information, commerce, and community. Their site is unusually clear, clean, and effective.
For people who want to see the car, they are building kiosk stores in malls with Tesla experts
who cant sell cars and who arent commissioned. When a buyer is ready, they place a refundable
deposit online. If they want to drive a car, they can arrange a test drive after theyve placed a
deposit. Essentially, Tesla is selling cars the same way Apple sells the iPhone.
(5) Build the community & focus on the experience: From the beginning, Tesla has made user
forums and user community a key part of the online experience. Tesla marketing highlights the

unique Tesla buying and ownership experience and encourages owners to interact with the
company and each other in full public view on the Tesla site. This provides a rich base of content
and owner passion on view for prospective buyers.
(6) Leverage the media and traditional press: While much is new about the Tesla Model S and
the accompanying sales and marketing model, one thing is not: the dependence on traditional
media. Tesla has been a master at driving press coverage, reviews, and awards for its cars. Its
clear that the company has worked hard to position the brand with the media and to make sure
the right messages come through. The companys #1 message is that they are trying to build the
best car ever made and not just the best electric car. This message is frequently repeated by the


The most interesting thing about Tesla the niche luxury electric car maker is the role of
marketing in selling electric cars that cost $100,000 or more. Many people have tried to change
the auto industry over the last 40 years and none have succeeded. The process of buying a car is
essentially the same as it was a generation ago. And the process has remained unpopular for
decades: the typical car dealer receives just 2 or 3 stars on Yelp.

Tesla does not spend millions of dollars in a traditional ad campaign. They let you and I discuss
it, rave about it, hate on it, or rejoice in the spirit of going electric in a Tesla, be the catalyst to a
viral and brilliant marketing campaign. At the end of the day, Tesla advertising is free.
Although Tesla Motors has no advertising department, nor an ad team, and certainly, no Chief
Marketing Officer (CMO), spokeswoman Alexis Georgeson, who is the closest to a PR person in
the company says:
Right now, the stores are our advertising. Were very confident we can sell 20,000-plus cars a
yearwithout paid advertising. It may be something well do years down the road. But its
certainly not something we feel is crucial for sales right now.
According to Ad Age:
Tesla has no plans to hire agencies or run ads in the near future. The in-house marketing
team has only seven staffers and an internal team runs the website, where customers order
directly. By contrast, Nissan spent $25 million advertising its Leaf EV in 2012.
Its true that Nissan, GM, Toyota, and Ford have deep marketing budgets that allow them to run
some of the most creative advertising campaigns to date. However, Tesla Motors doesnt have

that luxury, yet. Teslas capital investment is used to lay down the foundation for tomorrows
One thing Tesla does well with a minimum cash flow is to create a buzz. Without spending any
money on direct advertising campaigns, Elon Musk and the creative minds behind the company
know how to generate buzz, and in this modern age, that means using social media.
The first ad says: Press to hear the motor start, the other: Lift to feel the weight of the tank, and
finally, our favorite: Scratch and smell the smell of exhaust.


Tesla Motors has no advertising, no ad agency, no CMO, no dealer network. And that's no
The electric-vehicle company, co-founded by tech billionaire Elon Musk, is the buzz of the auto
industry and Wall Street, where its stock has tripled so far this year.
The Palo Alto, Calif., company is breaking all the rules of automotive marketing, eschewing
dealers in favor of selling through "stores" in upscale shopping malls and the internet.
Tesla has 35 stores across the U.S., Europe and Asia and plans to expand to 50 over the next
few years, according to an SEC filing.
At Tesla's store in the swanky Mall at Short Hills in New Jersey, Model S owner Connie
Charney says people lean out their car windows to take pictures with iPhonesas did two men
in a Bentley convertible recently.
"That's how cool this car is," said Ms. Charney, a greeting-card company owner from
Morristown, N.J. "You feel like you're part of something bigger, a new age of motor vehicles. ...
Elon Musk is my hero."
The high-tech stores provide a setting for customers to ask questions without high-pressure sales
tactics, said spokeswoman Alexis Georgeson.
Tesla has no plans to hire agencies or run ads in the near future, she said. The in-house
marketing team has only seven staffers and an internal team runs the website, where customers
order directly. By contrast, Nissan spent $25 million advertising its Leaf EV in 2012, according
to Kantar Media.
"Right now, the stores are our advertising. We're very confident we can sell 20,000-plus cars a
yearwithout paid advertising," Ms. Georgeson said. "It may be something we'll do years down
the road. But it's certainly not something we feel is crucial for sales right now."
Still, the company warned that it may "incur substantial marketing costs" through the use of
"traditional media" in the future rather than relying on its current "unconventional" strategies.



Above all, it has Mr. Musk, who inspired the Tony Stark character in "Iron Man" and has more
than 227,000 Twitter followers.
They're selling very few cars when you think about it -- but they are getting an awful lot of
buzz. A lot of the attention is not generated through what we consider traditional advertising. It's
really through social media.
While traditional automakers spend heavily on print and television advertising, Tesla is
building its brand in a way that doesn't cost anything.
"For the past week, a lot of attention has been focused on the company -- probably more than
their fair share," said Ben Kallo, an analyst with Robert W. Baird. "When Elon Musk tweets,
people write articles speculating about what it is."
The company's stock rose more than 2 percent after Musk tweeted March 25 about a "major"
announcement that ended up being the financing program. Wall Street was actually more excited
about the tweet than about the news itself, which was followed by a drop in Tesla's stock, but
Musk nonetheless succeeded in bringing a spotlight to an unsexy sales technique.
Musk has more than 176,000 followers on Twitter, and he deftly uses the social media platform
to dish out tidbits about the three companies he's currently involved in: SpaceX, Tesla and Solar
City. It helps that Musk is an esoteric billionaire who dreams of sending humans to Mars.
"SEC rules say, in effect, if you're going to disclose news about a subject, you have to disclose
fully about it," he said. The fact that the stock market reacted to the tweet only makes it more
likely regulators may crack down on Musk's vague missive, he said.
Mark Waxman, a marketing expert at consulting firm CBIZ in San Jose, also cautioned that
Musk's strategy risks investor fatigue. "Promising a news release a week breaks a cardinal rule of
media relations: To only promote when you have something worthwhile to say," he said.
But Tesla still has hurdles. It's legally battling dealer associations in several states for the right to
sell cars directly to consumers. The Model S starts at $69,000 and goes to $120,000, giving some
consumers sticker shock.



Tesla has changed the dreaded experience of buying a car
Galleries in highly populated shopping centers( galleries have over 1 million visitors and
25% of them go for a test drive)
Buying experience tailored to customers life schedule
The US auto market has lots of barriers to entrycapital investments in factories, the
need for high-end TV spots, and incentives for dealers chief among them. The
conventional wisdom is that no car could compete without winning over the showroom
But Tesla, the company started by tech billionaire Elon Muskwho sidelines as the
SpaceX pioneerhas disrupted that paradigm.
Tesla is pursuing a company owned store and service center model for:

Reaching people before they make a decision on a new car

Fairness & franchising

Service coverage

Conflict between gasoline and electric

Unlike other electric cars like the Chevy Volt, Tesla has no dealer network and doesnt
engage in any traditional advertising. The company has no CMO and only a small
marketing team.
Despite the fact that a handful of states, including Texas and Virginia, have recently
banned Tesla sales via traditional channels, the sleek electric cars are popping up on
roadways all over the country. The music-cum-boomtown of Austin, Texas sees hundreds
of Teslas on its streets, despite the statewide ban on their sale.
Thirty-five high-tech storefronts across the US, Asia and Europe, do some of Teslas
advertising for them. Theyre set up like Apple Stores, in upscale shopping malls and on
strategic urban thoroughfares. Curious passersby slow down to take pictures on their
smartphones and post them on social media.


The rest of Teslas advertising is done by curious journalists and online commerce.
With less than 10,000 cars sold worldwide, the Tesla nameand its stock pricecarries
more buzz than revenue (the company only recently posted its first quarterly profit).
But journalists love to cover the story of the technology and the bullish entrepreneur
behind it. In fact, because its relatively difficult to buy a Tesla (its $70,000 entry-level
price tag notwithstanding), theres a certain appeal of going rogue.
Since state governments arent able to effectively ban online sales, Tesla enthusiasts can
customize their rides, pay their deposits and wait 90 days for a delivery.


Wants to be equated to a premium American brand. Marketing objective is to raise brand
awareness and increase traffic to their website in order to increase sales

Target growing luxury sedan market

Utilize celebrity endorsers
Advertise highly visible events ( academy awards)
Web based short films
Ad campaigns based on : reconceptualizing the car buying experience


Teslas current marketing strategy- to be the best car ever made!

At the core, Tesla motor believes that electronic cars should not be perceived as a sacrificial
mode of transportation. Tesla has brought the best of both the automotive and technological
worlds together by etching the image of electric cars being a step backwards in performance,
efficiency and design. They have set out to forever change the perceptions associated with
electric vehicles, as well as providing electric vehicle as a viable alternative. Their cars are
efficient, fun to drive and out there to save the planet.

The following are Teslas core values

A Clean start- moving fast and constantly innovating.

Commitment to Electric- offers the most efficient path to sustainable energy, no hybrid,
no hydrogen. Makes the best electric car and train in the world.
Built around the Driver- the driver, the car and the environment connect in ways they
have never connected before.
Sparking the evolution- the goal is to accelerate the worlds transition to electric mobility.

Teslas brand strategy is to Build a brand without spending much on advertising. The CEO
of the company tweets about new advancements, people pay online and practically a lot of things
are done on social media. Tesla Motors does not have a conventional marketing and branding
strategy. The company has several applications on devices like iPhones. The most unique being
controlling the car through a watch. Tesla is highly active in the social media world. Be it
mobile applications or Twitter.
In the advertisement gallons of light Tesla motors points out to the viewers, the joys of no
longer taking from the earth but accepting from the sun. By driving the Tesla car, a family
contributes so much to the environment. All of Teslas ads have highlighted this one thing.

Why selling cars in India may be Teslas toughest challenge yet

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.

To counteract the price issue, the car company is working on a smaller, affordable sedan codenamed Tesla Model 3 for emerging markets, according to the Economic Times.
Teslas Model S can cost over Rs6,100,000 ($100,000), but the company is looking to go for a
cheaper price tag of Rs1,800,000 ($30,000) to Rs2,400,000 ($40,000) in India. It plans to build
an assembly plant here as well.

Cause of concern:
The electricity shortage and the infrastructure problems are going to much tougher to crack

Despite healthy growth in passenger vehicles, the electric vehicle (EV) sector in India,
however, continues to struggle, according to India Auto Report.
The idea of going electric remains a hard one to sell to an average Joe in India, it adds.
India has one of the highest import duty in the world in excess of 100% that goes
against our principal of importing car directly from our plants at Freemont in the US and given
the strict rules/ policies there are very less chances of setting up a plant.

Reva, Indias first commercial electric car that has been around for over a decade, didnt find
many takers, selling fewer than 500 cars a year. We are struggling to maintain a healthy sales
traction Concerns over battery and the higher price compared to petrol or diesel vehicles have
also worked against customer acceptance, said Chetan Maini, CEO of Mahindra Reva told The
Economic Times.
The Indian government is trying to promote the use of electric vehicles with its National
Electric Mobility Mission Plan 2020 (PDF), under which it plans to invest Rs14,000 crore ($2.25
billion) to build the infrastructure required for electric vehicles. But progress has been very
slow so far and India far lags the rest of the world in overall electric vehicle purchases.
Teslas balance sheet is impressive and the company has racked up steady sales increases over
the last six quarters, partly because there is an appetite for electric and hybrid cars in the US and
Europetwo of its biggest market. The company is built on a willingness to invest without
hoping for immediate profits, and theyve spent months trying to woo China.


But even the cheaper Tesla Model 3 is going to have a limited pool of buyers in Indiathe tiny
group of millionaires trying to project themselves as environmentally conscious, said Deepesh
Rathore, managing director of Emerging Markets Automotive Advisers, a consultancy.
It will be good as an image builder but it in most cases it will be a second car, he added.

TESLA MOTORS in India could target the higher income customers who have environmental
concerns and would like to get associated with such cause related products. In this way the Tesla
motors could bag a place in their garage as the second car.