An article on Quartz analyzed the feasibility of Tesla Motors Inc (NASDAQ:TSLA)’s sales in India, which is close to becoming third largest automobile industry. India is one of the largest population on Earth but the country is teeming with infrastructure problems which are not suited to Tesla Motors Inc (NASDAQ:TSLA). Being an Electric Car maker, Tesla Motors Inc (NASDAQ:TSLA) needs suitable conditions in order to make readily available charging stations, which seems a daunting task because India has massive energy problems. The country is facing a shortfall of 42 million Kwh.
Cost is another factor which can make Tesla Motors Inc (NASDAQ:TSLA) a difficult option for the locals. Indian economy is yet graded in the emerging markets where the average income of very low. Tesla Model S, which can cost around $100,000 is affordable by a minute percentage of the top elite class of the Indians.
But Tesla is optimistic about India market despite of the regulatory hurdles, electricity shortage and pricing issues. The source quoted Tesla Motors Inc (NASDAQ:TSLA) Motors Chief Information officer, Jay Vijayan, who thinks that by the end of 2015, Tesla can roll out its cars in India.
Tesla Motors Inc (NASDAQ:TSLA) is working on a third generation car Tesla 3 for the Indian market, according to Vijayan. It will have a price tag around $30,000-$35,000 which is half of the price of Tesla Motors Inc (NASDAQ:TSLA) Model S. He said that Tesla is not coming to the Indian market with a slogan of just an electric car; the company is also looking at multifarious factors that can make Tesla 3 the best option for buyers in the Indian markets.
Mahindra Reva is the potential competitor of Tesla Motors Inc (NASDAQ:TSLA) in India, which launched its electric car a decade ago. So far, the company is suffering in its sales. There are about 500 car sales recorded year.