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The Nifty Auto index faced selling pressure on Wednesday, dropping nearly 1%, while the BSE Auto index marginally declined by 0.21% to trade in the red. The BSE Auto index was dragged down by index heavyweights such as Mahindra & Mahindra and Maruti Suzuki. On the other hand, Tata Motors was in the green.
This comes after reports of Tesla looking at making an entry in India in 2025.
Sources told CNBC-TV18 that Tesla could enter the Indian retail market as early as April. The company is looking at importing electric cars from the Tesla plant in Berlin and selling them in India.Tesla and Elon Musk may first like to bring an Electric Vehicle (EV) under $25,000 into India. This coincides with Tesla’s plans to launch an affordable electric car to further grow market share as it faces competition from BYD.
India imposes a 70% duty on imported cars up to $40,000. While it has reduced the duty for luxury vehicles costing more than $40,000, it has yet to take a call on the former.
“We are happy to have competition in India, it will help the electric segment,” Anish Shah, the M&M Group CEO and MD, had previously told CNBC-TV18. However, he said that the government takes action to foster Make in India and it is important that the country does not become a “dumping ground for steel or automobile” as that would be a problem. He said as long as the focus is on Make in India, it is good for the country.On Tuesday, February 18, industrialist Anand Mahindra said he is well-prepared to deal with any competition that may come his way when Elon Musk’s Tesla enters the Indian market. His biggest asset? The people of India.
On X, a user asked the Mahindra & Mahindra chairperson how he would handle the competition, should Tesla come to India. In response, Anand Mahindra said this wasn’t the first time such a question was asked of him.
“We have been asked similar questions ever since the opening up of the Indian economy in 1991. How will you compete against Tata? Maruti All MNCs?” he wrote.
“But we’re still around. And working like maniacs to still be around & relevant even a century from now. With you cheering us on, we will make that happen,” he concluded.
On another note, Maruti Suzuki shares fell by 0.6% to ₹ 1,270.75 on BSE and Bajaj Auto also saw a 0.33% drop to ₹ 8,413.35 per share. In contrast, Tata Motors gained 0.14% to ₹682.55 on the BSE.
Meanwhile, Mahindra & Mahindra’s newly launched electric SUVs, the XUV E9 and BE 6, have seen strong demand, with a total booking value of ₹8,472 crore (ex-showroom price).
