Tesla Business Model And The Future Of Electric Cars In India

The upcoming decade seems to make the fully electric cars a clear winner of the automobile industry race. Reportedly, battery prices have been falling at a rate of 73% since the year 2010. Electric cars are highly expected to be as inexpensive as the Fuel-powered cars in the foreseeable future. All the countries are waking up to the future of the electric cars.


The excitement to witness the future prospects and potential of these cars has majorly been driven by the renowned automobile company Tesla Motors Inc. (TSLA). The electric cars manufacturing company has been super successful and is the leading high-end car manufacturing company, all thanks to its exciting and unique business model and business strategies.

The vision and mission of its CEO, Elon Musk is to bring in sustainable cars and provide them to the in the electric cars market as soon as possible. Tesla‘s business model is solely based on generating revenue and income through direct sales and not by providing franchises or any other sort of dealerships. In layman’s language, to buy a Tesla car customers will have to purchase it directly from the original company outlets as the company does not provide any franchises to third party dealers.

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Due to this approach of their business model, the company has set up an international network of showrooms and galleries to make their services and cars available to people worldwide. This approach has also limited the choice of employees working in the company and due to this all the services provided will be by the choice of the owners and therefore, in the interest of the company. Thus, limiting the interference of third-party dealers and providing a better customer service experience.

The only setback for Tesla’s electric cars is that the company‘s business model has key focus on rollout charging stations as with their unavailability their cars will not be able to charge itself and hence they will be dysfunctional.  


Since the years of 2010s, electric vehicles have gained popularity and fame apart from major public transports. Surprisingly, by the September of the year 2016, around 10 Lakh electric vehicles were delivered all across the globe. India, has a lot to gain from the foreseeable potential and adoption of the electric cars which has been accepted worldwide. Under the Make in India scheme, the manufacturing of e-mobility and their required parts and components is expected to increase the GDP of the fiscal year 2022 by 25%. From the economic perspective of the country, large- scale adoption of electric cars is projected to help save oil imports of worth ₹ 6000 crores by the financial year of 2030. At present, 82% of the India’s oil demands are fulfilled by the imports.

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Electric mobility is set to reduce harmful vehicular emissions which tend to majorly contribute to the air pollution. The fuel prices of the electric vehicles are super low (Rs. 1.1/km approx.) due to this, the cost of Rs, 20,000 is reduced per 5000km. Also, it will reduce vehicular emission, which otherwise creates a 3% GDP loss every year. With rise in private cars used by citizens, small transports, and other modes of accessible transportation, trucks were the only solution left. Some last moment delivery companies have stepped up and taken the responsibilities by themselves to use electric vehicles for the purpose of serving transportation and reducing the carbon emission levels on the planet Earth.

A comprehensive electric- mobility system comprises of e-vehicle service providers, chargeable infrastructures and the key component— the electric cars. A green mobility roadmap for India has been recommended for the establishment of a national plan for the construction of the required public chargeable infrastructure. Arrangements are being made to get over this major matter of concern by the authorities. Recently, Delhi legalised charging stations for e- rickshaws and hopes that with more incentives provided big financial support would be provided for the development of the electric infrastructure. A campaign was also run across the National Capital, Delhi, which was known as the Switch Delhi Campaign, in which people stepped up in the NCR region of the country to promote the use of electric vehicles. It was an 8-weeks campaign that promoted the benefits of using electric vehicles in industrial, personal, and public uses. In the country, public transport is the leading and making way for mainstreaming of electric vehicles. E-rickshaws are an important mode of public transport nowadays in Indian Cities due to lower cost of operation and economic fares.

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The recent rise in electric vehicles sales display the jumping demand and preference of electrical cars over the traditional fuel- based cars by the citizens of India. The rising demand has also been driven by the hope for better fast charging batteries with extended driving range to be developed in the future for better mobility of the electrical vehicles. Automatic components producers the core challenge is to produce and develop good quality batteries which last long, safe and have high energy storage capabilities. The determination of the ultimate viability of electric vehicles is equally important. By reducing the overall vehicle mass, a lot can be achieved, such as, protection against flammability and short circuiting which can withstand the overall chemical and physical degradation. Electric vehicles also possess the inherent pros of performance and drivability.

A major step to promote electric- vehicles can be taken by providing more incentives, and rebates to both the manufacturer and consumers and promotion of indigenous capacity and technology and taking measures to access to vehicular loans at low interest rates same as the other normal vehicles even for new brands such as Tesla. Indian markets are highly volatile and lack a sustainable demand which makes it difficult to determine the time period of Indian citizens completely using the electric cars. The high sales and current demand speaks volumes about these cars to be duly accepted completely by the Indian markets soon within just a span of a few years which is a positive indication of the future prospects of electric cars in the future.

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