EV Market India— A major upheaval has been seen in the Indian EV Market India. Vietnam’s leading automaker VinFast has left American company Tesla far behind in terms of sales by making strategic changes as per the needs of the country. According to latest reports and industry data, while Tesla has been able to sell only 383 electric vehicles since entering the Indian market in September last year, VinFast has performed brilliantly and delivered about 3,568 units in the same period.

EV Market India: Vinfast beats Elon Musk’s Tesla, wins with localization and aggressive pricing

Local manufacturing and low price become Vinfast’s strength

The biggest reason for VinFast’s fast growth is its localization and competitive pricing strategy. The company has established its manufacturing unit in Thoothukudi, Tamil Nadu. Due to local production, Vinfast has got a huge relief from heavy import duty, the direct benefit of which is being passed on to the Indian customers in the form of price reduction.

Talking about the prices, the starting price of Vinfast’s premium electric SUV VF6 is around Rs 17.29 lakh and the price of VF7 is around Rs 21.89 lakh. Apart from this, the company has launched its new electric VF MPV 7 in the Indian market only last month at a starting price of Rs 24.49 lakh (ex-showroom), which is becoming quite popular in the mid-range segment.

Elon Musk’s Tesla trapped in high import duty

On the other hand, the sales of billionaire businessman Elon Musk’s company Tesla in India have been much lower than expected. Tesla is currently importing its vehicles into India as a completely built unit (CBU) from China’s Shanghai Gigafactory. 100 to 110 percent import duty is imposed on cars that are fully imported into India, due to which Tesla cars have become very expensive for the Indian market.

The starting price of Tesla’s Model Y in the Indian market is around Rs 60 lakh, while the price of its long-range rear wheel drive variant goes up to Rs 67.89 lakh. Only limited showrooms and lack of charging infrastructure in big cities like Delhi and Mumbai are also considered to be the main reasons for Tesla’s slow pace.

Tesla’s counterattack: 6-seater model YL launched in India

To strengthen its position in the Indian market, Tesla has now started targeting premium and space loving customers. The company has recently launched its new electric crossover Model YL in the country at a price of Rs 61.99 lakh (ex-showroom).

It is a long-wheelbase and three-row version of the company’s standard Model Y, which has been specifically designed for large families and customers looking for generous cabin space.

What do officials and experts say

“The Indian automobile market has always been value-driven. It is difficult to establish a foothold here on the basis of brand value alone unless you have local manufacturing, strong charging network and right pricing. VinFast has caught the pulse of the Indian customers at the right time.”
— Automotive Industry Analyst, New Delhi

Citizen Focus: What does it mean for customers?

The good thing for Indian customers is that due to the increasing competition among global companies, the options for premium and safe electric vehicles in the country are increasing rapidly. Vinfast’s investment in Tamil Nadu is not only increasing employment opportunities at the local level, but the customers are also getting international standard vehicles in the budget. If you are also planning to buy a premium electric car, then VinFast’s options in the budget of 15 to 25 lakhs and Tesla’s new 6-seater model in the budget above 60 lakhs are ready for tough competition in the market.