Asia's Flaring EV Ecosystem
There was widespread expectation that Musk's visit would coincide with the unveiling of plans to set up a Tesla manufacturing unit in India, especially in light of the government's recent incentive of reduced import duties on certain electric vehicles (EVs). This incentive is available provided there is a commitment to invest a minimum of $500 million in local manufacturing within a span of three years. Musk expressed his eagerness to reschedule the visit for later in the year.
However, analysts are quite sure that Tesla will ultimately set up a base in India, after we overtook Japan as the world’s third-largest automobile market. This can be interpreted as a potential remarkable competition in the Asian automotive industry. As Tesla makes luxury electric vehicles, even though the affordable EV segment wouldn’t worry much, the luxury EV makers in India will be watchful.
The Asian continent is the fastest-growing EV market and industry in the world, with the market projected to grow to $839.01 billion by 2030. The region's populous countries, including China, India, Japan, and South Korea, are home to many major EV manufacturers. As Tesla is expected to set new benchmarks in the EV segment in India, the Asian companies must up their game. However, India will need more leaders with innovation and courage in their hearts to conquer their opportunities. This yearly special issue of CEO Insights Asia sheds light on some of the leaders in the Asian manufacturing industry. Do let us know your thoughts.
Do let us know your thoughts.