Elon Musk has got Tesla enthusiasts in India holding their breath this year as the CEO has announced that Tesla will be moving into the Indian market in 2021. Some are skeptical since India does not have a large market for electric vehicles, but what about Tesla’s energy sector? Will India’s solar market be Tesla’s path into the country?
Tesla’s solar sector could boom in India’s large and growing renewable energy market, especially considering the need for storage options that Tesla’s Powerwall technology could fill. Tesla is still working to gain entry into the country. Recent developments do indicate that Tesla’s entry may occur.
How likely is it that Elon Musk’s prediction for a 2021 entry date into India will come true? What challenges will Tesla Solar face in India, and what could Tesla’s entry mean for the country? For the answers to these questions and more, keep reading to learn everything you need to know about Tesla Solar in India!
Why Should Tesla Solar Move into India?
Before we get into a discussion about how and if Tesla Solar will be making a move into India, we will first consider why Tesla would want to do this. Many Tesla enthusiasts in India who are currently waiting for Tesla to enter the country are eagerly awaiting their electric vehicles. If consumers seem to be more concerned about the cars, how does Tesla solar fit into this?
Do Tesla’s Electric Vehicles Stand a Chance in the Indian Market?
While there are groups that are quite adamant about their desire for Tesla’s electric cars in India, the fact of the matter is that Tesla is not likely to find large success with their vehicles in India currently because of two large problems.
The first issue is the price. Tesla’s cars are expensive enough to be considered a luxury item by many. While there are certainly people who can (and are very eager to) buy Tesla’s vehicles in India, the majority of the population is not likely to jump at the chance until Tesla can lower their prices to a far more competitive level.
The other problem is the lack of infrastructure. India does not have a large electric car market, and thus it currently lacks the elements that would make widespread Tesla ownership feasible. Charging stations and adequate roadways are two notable needs.
Right now most people in India use smaller vehicles such as motorcycles and auto rickshaws. The jump from that to a Tesla is quite big. Although Tesla is certainly hoping to deliver its vehicles to those in India who do want them, the company can hardly expect massive success with their cars in India.
If this is the case why does Tesla want to get into India? The solar market is likely the answer.
Why Does Tesla’s Solar Sector Stand a Much Better Chance in India?
Although the electric vehicle market can only be said to be in its fledgling stages in India, the solar energy market is quite a different story. As of 2020, India is the fourth country in the world in terms of installed renewable energy and fifth in solar power specifically. India has a large solar market only falling behind China, the USA, Japan, and Germany.
Furthermore, not only is India already highly invested in solar energy, but predictions also indicate that this will only grow. Tesla would be hard-pressed to find a country with more of an expanding interest in solar energy at the moment.
If the enormous market was not enough, there is another reason that Tesla Solar could take India by storm: power storage. Countries, such as India, that went through rapid industrialization often have issues with power reliability and frequent blackouts. The technology to store solar energy for later use is significant in these cases, and Tesla has the technology to do just that.
Tesla’s Powerwalls store energy gathered from their solar installations. Not only would this provide reliable power around the clock, but it could also provide India’s growing solar market with a way to store the large amount of energy produced. Basically, India has a substantial need for solar energy storage solutions, and Tesla has that.
Of course, to make their energy-storing technology more viable in the Indian market, Tesla will need to work on lowering the price of the Powerwall and possibly making some other improvements as well. In the United States, Tesla’s Powerwall is an add-on, but for India, it could be the main attraction. Thus, Tesla may need to pour more energy into this product.
Will Tesla Solar Come to India Soon?
Elon Musk has been teasing about Tesla’s entry into India for some time, but the CEO made a much more specific prediction in October of 2020. In a tweet, Musk remarked that Tesla would be coming to India…
It is now several months into 2021, and Tesla is definitely not in India yet. Is Elon Musk just getting our hopes up, or is the company actually close enough to be in by the end of this year? What evidence is there that this might happen? Let’s take a look.
Are There Signs that Tesla Will Move into India?
There is some clear evidence that Tesla is planning a move into India. The company has registered Tesla Motor India and Energy Private Limited in the city of Bengaluru. This step was taken in January of 2021 and shows that Tesla still plans to try their success in the car market and that they intend to enter the energy market as well.
Besides these registrations, it also seems clear that Tesla plans to build a factory in India. Government officials in India revealed that they have been in talks with Tesla about purchasing land for building a factory in the city of Bengaluru (also called Bangalore).
However, this factory will be for making Tesla’s electric vehicles! An auto-manufacturing factory in India would allow Tesla to avoid the enormous import duties that were a major obstacle to Tesla’s previous attempts to work in India.
What Does This Mean?
These signs indicate that Tesla’s main focus right now seems to be getting their electric vehicles into the Indian market. There has been little word on Tesla’s plans to bring their solar products to India. This does seem strange as India currently has a small market for electric vehicles and a booming solar energy sector.
The registration of Energy Private Limited does assure us that Tesla is not completely ignoring the solar market in India, but the majority of the buzz and news right now is devoted to Tesla’s automotive ventures in India.
Hopefully, Tesla will be able to bring both their vehicles and solar energy products to the Indian market. India could greatly benefit from increased energy storage, so it would be odd for Tesla to overlook the potential of their solar and Powerwall technologies.
Tesla Solar is probably coming to India very soon, maybe even by the end of this year! However, exact information on this is hard to come by since most people are currently more focused on how Tesla plans to bring their electric vehicles to India.
Still, the attention and Tesla’s focus may soon shift, as India’s solar energy market currently appears to have more potential than the demand for electric vehicles. Tesla’s solar technology could benefit India and give Tesla a slice of a growing market.