India's Invitation Is an Opportunity for Tesla Not a Threat

India invites Tesla to build a Gigafactory at Bangalore.

According to Economic Times, Gaurav Gupta, the principal secretary of Karnataka’s commerce and industries department, says Bangalore has a favorable ecosystem for electric vehicles, and this is something that Tesla could effectively tap into for its potential operations.

“We have offered Tesla all support to set up a research and development (R&D) center and the manufacturing unit. Bengaluru has a favorable ecosystem for electric vehicles (EVs) and Tesla can leverage on that,” Gupta said.

Earlier, Elon Musk said Tesla will surely enter the Indian market. The talks between Tesla and India are still preliminary and are going to take a long process. The Indian government official says they will keep the sustained dialogue going with Tesla. They have briefed Tesla about how Bangalore is home to growing electric vehicle startups and also component makes and the advantages it offers.

Some analysts, mentioned in the Economic Times' report, point to Indian challenges for Tesla, but I see them as opportunities for new market entrance.

"Analysts said expectations of a big-bang entry by Tesla into India should be muted due to the cost of the car as well as lack of infrastructure for electric vehicles in the country. “Tesla coming to India would not have such a major impact on the market because first of all it’s a very premium segment, maybe around ₹40 lakh or so even for the Model 3. Range anxiety in the mind of car owners could be an issue for Tesla, despite the Model 3 offering over 500 km on a single charge,” said Aman Madh."

Do you see these as points as challenges or opportunities for Tesla to enter the Indian market with a Gigafactory?

Armen Hareyan is the founder and the Editor in Chief of Torque News. He founded TorqueNews.com in 2010, which since then has been publishing expert news and analysis about the automotive industry. He can be reached at Torque News Twitter, Facebok, Linkedin and Youtube.