After years of speculation, Tesla can finally appear for the first time in India.

The American Electric Ope (EV) has started employment for dozens of jobs in Delhi and Mumbai. It is also reported that he is looking for showrooms in both cities.

The third largest economy in Asia provides an interesting growth opportunity for future Tesla cars with a decrease in global EV sales and competition from Chinese manufacturers more.

But there is a million dollar question-Can Tesla compete in the Indian sensitive market for prices?

Tata Motors currently occupies the center in the EV market in India – with more than 60 % of the market share. MG Motors – owned by JSW in India and a Chinese company – ranks 22 %. They are followed by Mahandra and Mahindra.

EVS, which these companies have made, cost less than half of what the consumers will have to get rid of – about $ 40,000 (31,637 pounds) – for only the basic Tesla model. Thus, it will be seen as a luxury car, competing with the high EVS made by Hyundai, BMW and Mercedes.

Simply put in size, this India will make a small market for Tesla Elus Musk President, unless the company provides a low -cost model specifically for the country.

Besides the price, the road conditions in India can be a challenge.

Tesla cars have a very low ground qualifiers – or the distance between the lowest point in the integration of the car and the ground. This will make adaptation to Indian roads difficult. To work in the country, current models – which will lead to increased manufacturing costs.

Will Tesla only do this for one developing market where it can only have a small presence?

“It was even with other world -class original equipment manufacturers (OEMS) at the top end with small sizes. You cannot justify these major engineering changes,” Hermazd Surabji, editor of the Autoocar India magazine, told the BBC.

Also, amid all these noise, it is easy to forget that EV sales are still less than 3 % of the total passenger vehicle sales in India. Even the critical additional infrastructure, such as charging stations, took years to come. While they have a pace, there are only about 25,000 charging stations across India.

In fact, Tesla will compete for space in a very small market, albeit growing, EV.

But at the level of politics, India appears to be doing its best to attract the car maker.

The country has identified an ambitious national vision to go to the electrical. It plans to get 30 % of private cars, 70 % of commercial cars, 40 % of buses and 80 % of two and three wheels that electricity go by 2030. Most of the provincial governments have created their EV policies to stimulate demand and supply.

The benefits of India on electric cars are the highest among the main economies, according to HSBC Securities. It is 46 % of the best -selling electric car model in the country.

It is not surprising, then, to grow EV sales to passengers astronomically by more than 2000 % in less than five years – moving from a low base from 4700 annually to 100,000 cars.

“He has reduced the difference between regular cars and EVS a lot, which made customers re -choose them,” says Jumk Research.

In April of last year, India also reduced import taxes on EVS for global auto companies that committed to investing $ 500 million (400 million pounds) and starting local production within three years.

Tesla and other imported electric vehicles More than 35,000 dollars (27,550 pounds) can now enjoy the duty to import 15 % less than up to 8,000 cars. This came after Musk complained that high import duties prevented the company from launching its cars in the world’s fastest growing economy.

“He is very smart, because he forces a global player to translate – the way the game works: Come and build in India,” said Surabji.

However, the proposed policy may put the Indian local car makers in a non -favorable position, given that the investment condition for foreign players is “not important” compared to Indian players in this sector, the HSBC search paper warns.

The duty of import is also 15 % “much lower” than the similar combustion vehicle tax in India, which also pays an additional road tax, according to HSBC.

Local EV players say the presence of a “level stadium” is important, but it appears to be unjust before the entry of the fashik Tesla at the present time.

“Mahindra, the CEO of Mahindra, the CEO of Mahindra, the CEO of Rajesh Jejurikar, Maahindra and Maahindra.” His company feels that more players will strengthen the current ecosystem of India and work to improve the attractiveness of their shows.

Mr. Jiguricar says, critical problems such as “range anxiety” – anxiety, whether the EV battery charge will be sufficient to complete a trip – through “strong battery integration and the real world test through various road conditions”, adding that the brand publishes an advanced technology in its products.

It will be difficult to overcome Tesla’s Edge in this field, along with more stable batteries and a better user interface, it will definitely distinguish Tesla from others in the market, says Sorabjee.

What may give Tesla Tailwind is the increasing share of the distinguished vehicles in the Indian car market. As a global brand with a “wonderful”, Tesla will have a symbol of the two young Indian population.

But none of these – EV policy in India or the growing demand for distinguished cars among the wealthy in India – has yet led to the commitment of Tesla to put manufacturing dollars in the EV facility.

Currently, the auto maker appears to charge only units of its factories abroad.

When this changes, changes depend on many things – how quickly the base of the wealthy consumers in India, and what customs tariff structures as soon as India completes trade negotiations with the United States.

President Donald Trump has already expressed his dissatisfaction with Tesla that is likely to build a factory in India to avoid high definitions. In an interview with Fox News recently, he said this would be “unfair” for the United States.

Can Trump’s policy, “America first”, will reduce the appetite of musk to start manufacturing units in India?

The question is a subject of discussion, but it seems that India will first get attractive Tesla showrooms for the rich Tesla factories, instead of creating Tesla factories for its uncomfortable fans.