JSW Group’s Parth Jindal says that Tesla arrival will transform India EV landscape, increasing the competition and technology.
JSW Group’s Parth Jindal believes that Tesla’s entry into India could catalyse the country’s EV market, transforming it into a competitive technology hub and driving the next level of oil and energy innovation. “I am very positive that with the entry of Tesla into India, the country’s EV business will receive a great deal of exposure,” said Parth Jindal, MD of JSW Group.
Talking to CNBC-TV18 recently, Jindal emphasised the need for higher EV penetration and welcomed more players in this space stating that Tesla’s entry will lead to better choice and technology for Indian customers. “India is waiting for Tesla to come; I’m waiting for Tesla to come in India,” he said.
EV Aspirations
JSW Group is another serious player eyeing the EV space as well as manufacturing its own EVs Sajjan Jindal, chairman, of JSW Group, also revealed that although the group is in discussions with MG Motor India to enter the EV space, at the same time, the group is creating its own EV cars. We are very serious about coming into the EV space. The best option for us would be MG. If it happens else we are also working preliminarily to make our own EV cars,” Sajjan Jindal said.
He feels that entry into the EV space is key for the future of JSW Group. JSW Group, a Kolkata-based manufacturing company, revealed plans to introduce its own EV brand in India in December 2024 as part of the “Make in India” initiative, solidifying its commitment to the growing EV front.
The move followed a joint venture with China’s SAIC Motor to build and sell Morris Garages’ EV for $1.5 billion. Sajjan Jindal made it clear that the company was not interested in being an outpost for a Chinese company and wanted to manufacture products and add value to them in India.
Market Implications
While experts acknowledge that the Indian domestic EV market will breathe a sigh of relief that Tesla will finally enter. Evo India magazine editor Shirish Chandran thought that there will be a lot of excitement around the upcoming Tesla cars in the country and the brand will play a crucial role in making the Indian electric car space bigger.
Gagan Sidhu, director at the CEEW Centre for Energy Finance, said that while two and three-wheeler sales forcefully led the market, four-wheelers remained on the back foot primarily as there was a lack of models as well as charging infrastructure. Tesla entering the market could increase the choices available.
Competition concerns Tesla’s entry could spur competition with homegrown vehicle makers like Tata Motors and Mahindra. However, the overall benefit to the Indian market should be much larger than any competition. Tesla’s base variant is believed to be targeted between Rs 25 lakh and Rs 30 lakh range, competing directly with the top-tier models of these domestic manufacturers.
So although Tesla has faced some recent struggles with sales numbers and streamlining its workforce, experts do not expect Tesla’s new Indian chapter to suffer major setbacks in the near term. Govt SupportThe recent Indian EV policy announced by the government is expected to stimulate foreign EV makers, such as Tesla, with hefty cuts in import duties for e-cars.
The automaker’s (Tesla) partnership with Tata Electronics to develop semiconductor chips locally and talks with several state governments about establishing a factory here show its serious interest in the Indian market.
Fragmented Market
The passenger vehicle segment in India (that is, cars, MPVs, SUVs, etc.) is increasingly here on out being carved and divided into niches of electric vehicles (EVs), strong hybrids, CNG and conventional fuel vehicles. Their push for BEVs will only underpin this fragmentation, which will be enhanced by the rise of competitors that focus on specific segment spaces. Powerful hybrid vehicles are also starting to make headway as a stepping stone for users who are not ready to jump into fully electric vehicles.
Localisation Efforts
Tesla will likely be expected to invest domestically, source parts from within 48, and give financial guarantees to take advantage of reduced import tariffs. This promise could help create a healthy EV ecosystem in India and also push localisation efforts.
Economic Growth
Besides talking about the EV market, Parth Jindal also spoke about the need for indignation through manufacturing which would help create jobs for India’s Young and Rising population.
Manufacturing sector shares in country GDP are also relatively small in rapidly expanding economy like India,” he said. As global interest in India rises, one thing is clear, according to Jindal, the domestic market must be protected so industries can compete on a level playing field at home. He argued while insisting that India was not looking for protectionist manoeuvrings, for a “level playing field”.
Steel Tariffs
Jindal also expressed optimism over the US’s decision to impose a 25% tariff on steel imports, saying that it would help JSW Steel USA. The repeal of exemptions that had previously been provided to nations such as Brazil and South Korea would foster more competition, he explained. With JSW Steel USA being insulated since it does not import steel from India and sources raw materials locally, the new tariff structure is likely to work in its favour in the US market.
JSW USW Group
JSW Group, a leading industrial conglomerate, has a diverse portfolio of products and services across various sectors, including steel, energy, cement, and paints. The company has a notable presence in Karnataka. Jindal stated that the firm’s recently announced investments would further strengthen its already extensive projects in the region, reflecting JSW’s long-term commitment to Karnataka and its Vijayanagar complex.
On the front of Business expansion, Jindal stated that JSW is in the process of acquiring Akzo Nobel, which he said fits well into the expansion of JSW Paints. However, he expressed hope that a successful bid would take place, but “a price there is not the case where we will go ahead with the company”.
A final decision on the acquisition, however, has not yet been reached, he added, noting also that a few more parties had expressed interest in entering into a partnership with JSW to buy the assets.
IPO Plans
JSW Cement plans to file for its initial public offering for the first half of this year, depending on stability in the markets, Jindal said. He further observed that if JSW acquires Akzo Nobel, the company would not have to publicly list JSW Paints.
Looking Towards the Future
Acclaimed as a transformative moment for the automotive sector, Tesla’s debut in India could set trends in the movement toward electrification, technological advancements, and market segmentation. As stakeholders adjust to these changes, we will witness an impending refashioning of the industry, uniquely moulded by both Tesla’s disruptive approach and the evolving tastes of Indian consumers. India’s outlook on electric mobility seems bright, with the entry of JSW Group in EV and the arrival of Tesla.
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