From Tesla’s entry to record SUV sales; RBETA 2024 celebrates India’s Auto innovation

Republic Business Emerging Tech Awards:  India's automobile industry is experiencing unprecedented growth, with record-breaking sales driven by surging demand for SUVs and the anticipation of fresh investments in the Electronic Vehicle (EV) category including United States’s EV major Tesla. 

Against the backdrop of this expansion, Republic Business is set to host the Republic Business Emerging Tech Awards 2024 (RBETA 2024), honouring the innovators and new-age leaders shaping India's digital and technological transformation within the automotive sector. India's emerging auto technologies include Electric Vehicles (EVs), Connected Vehicles, Autonomous Driving, Advanced Driver Assistance Systems (ADAS), Vehicle-to-Everything (V2X) Communication, and many more. 

While the government continues to undertake policy changes to accelerate the adoption of EVs across the country, the local technology enabling faster and better adoption is competing with the brands on a global stage. Amid this, manufacturers are also exploring sustainable materials for vehicle production, bringing sustainability to the forefront of India’s automotive transformation.

Record sales driven by strong SUV demand

The Indian automobile industry's strong performance, with the domestic industry growing by 12.5 per cent during the last financial year (FY24) to 2,38,53,463 units compared with 2,12,04,846 in the previous year, according to the Society of Indian Automobile Manufacturers (SIAM).

Image credit: Unsplash

In the passenger vehicle (PV) segment, the total wholesale (dispatches to dealers) grew by more than eight per cent to 42,18,746 units during the year as compared with 38,90,114 units in FY23.

Large vehicles, such as SUVs, constituted 60 per cent of total passenger vehicle sales. Notably, SUV sales surged by 26 per cent, contrasting with a 12 per cent decline in the passenger car segment, encompassing compact sedans and hatchbacks. Indian drivers, accustomed to challenging road conditions and frequent traffic congestion, are increasingly favouring larger vehicles perceived to offer greater safety and stability. 

Tesla’s entry into India

Recently, the government has also announced a major reduction in import duty by 15 per cent for electric vehicle (EV) makers committing to a substantial investment of $500 million, or Rs 4,150 crore. 

To encash the import duty relaxation and build an early stronghold into the Indian market, Tesla has intensified efforts to enter India and currently exploring a suitable location to establish the company’s first plant in the country. Tesla may also be scouting for a local partner to set up its operations in India. According to media reports, the US electric vehicles major is in talks with Reliance Industries for a possible joint venture to build the manufacturing facility in the country.

Elon Musk with PM Narendra Modi | Image credit: X.com

Tesla’s CEO Elon Musk will also meet Prime Minister Narendra Modi in his upcoming visit to India scheduled for 21 April 2024. According to the reports, Musk is likely to officially announce Tesla’s entry into India in his forthcoming visit to India. 

Furthermore, the Government’s policies are in favour of electric vehicles which can be a crucial point for Tesla and other foreign investment in the country. Frameworks such as the Faster Adoption and Manufacturing of Electric Vehicles (FAME) scheme and the National Electric Mobility Mission Plan (NEMMP) provide a roadmap for the gradual transition to EVs. These initiatives aim to not only mitigate air pollution and curb greenhouse gas emissions but also stimulate job creation and enhance energy security.