You’re now a marketing executive for Tesla, tasked with finding and evaluating a new market for car sales. Select a country in which Tesla does NOT currently sell, and write a two-page summary outlining key findings that you will submit to the executive team at Tesla. Your summary should include, in concise business writing style, the factors you used to make your determination, any cultural sensitivities of launching in the selected country, and an evaluation of the economic and political risks associated with launching in that country.
Establishment of the Tesla Company in India
Institution of Affiliation
Establishment of the Tesla Company in India
The China-based electric vehicle company, Tesla, has not been able to launch its operations in India. Establishing the company in India has proved to be a difficult task due to high importation rates and local Indian manufacturing companies that would prefer Tesla to establish a manufacturing plant in the country rather than just dealing with the importation of cars (Lokhande et al,.2018). For Tesla to be established in India, a reduction in import duties should first be made.
India has not yet come to terms with allowing the company to sell China-made cars since the Indian population is comparable to the population in china, this makes it highly promising that there is enough manpower that can make these electric vehicles rather than relying on India for importation.
Cultural sensitivities of launching tesla in India
Despite the China-made electric vehicles being environmentally friendly, launching in India still proves to be a challenge since the majority of the Indian population prioritizes their pockets over the need to use clean energy automobiles.
The Indian infrastructure does not make it easier for the operation of the electric vehicles Tesla deals in. Providing room for all Indians to use these China-made electric vehicles proves to be very expensive for the government. Providing charging points for the entire population sounds like a near impossibility.
The Indian population has identified the lack of mammoth ground clearance systems on most Tesla-made cars. These vehicles cannot operate efficiently on the Indian poor roads as one knock by a car on the road will completely disintegrate these vehicles.
Tesla is more likely to thrive in India due to the lack of any serious competition from other automobile companies. The establishment of the company in the country will receive a positive reaction from the economic society (Vibhandik et al,.2021). Expensive German companies like Mercedes and Audi have not yet sort to expand their operations in India. This leaves a greater opportunity for the china-based company to thrive in the country amid its permission from the government.
Economic and political risks associated with launching in India
The establishment of the Tesla company in India will mean a greater importation of electric vehicles. This hinders setting up manufacturing companies in the country to produce its electric vehicles. India has the manpower and skills to manufacture its vehicles due to a higher population just like china (Verma et al,.2020. The launching of the China-based company in India will thus increase the rate of unemployment compared to when a manufacturing company is set up.
India imposes heavy duties on its imports and this makes the establishment of the Tesla company difficult. The China-based automobile company will have to pay more to make its products available for the local Indian markets. The Indian government provides great benefits if the China-based company decides to produce here. The establishment of a manufacturing plant in India is proving to be more expensive compared to just importing already made electric vehicles.
Allowing the company to import its products to India will provide a division between the stakeholders of the local automotive industry. Importation of electric vehicles in the country will lead to a reduction in the investments made to bring up the local industries in the country (Gupta et al,.2018). Allowing Tesla to import its products to India will promote a higher demand for such products and therefore kill the locally emerging automobile industries in the country.
Gujarathi, P. K., Shah, V. A., & Lokhande, M. M. (2018). Electric vehicles in India: Market analysis with consumer perspective, policies, and issues. Journal of Green Engineering, 8(1), 17-36.
Pandit, D., Joshi, M. P., Sahay, A., & Gupta, R. K. (2018). Disruptive innovation and dynamic capabilities in emerging economies: Evidence from the Indian automotive sector. Technological Forecasting and Social Change, 129, 323-329.
Saxena, N., & Vibhandik, S. (2021). Tesla's Competitive Strategies and Emerging Markets Challenges. IUP Journal of Brand Management, 18(3).
Tendon, S., Rastogi, M., & Verma, T. (2020). CHANGING PARADIGM OF E-COMMERCE: FUTURE OF E-CARS IN INDIA (A STUDY OF TESLA). International Journal of Management (IJM), 11(04).
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