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 anticipation of fresh investments in Electronic Vehicle (EV) category including United States’s EV major Tesla. 

Against backdrop of this expansion, Republic Business is set to host Republic Business Emerging Tech Awards 2024 (RBETA 2024), houring invators and new- leers shaping India's digital and techlogical transformation within automotive sector. India's emerging auto techlogies include Electric Vehicles (EVs), Connected Vehicles, Automous Driving, vanced Driver Assistance Systems (AS), Vehicle-to-Everything (V2X) Communication, and many more. 

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

Record sales driven by strong SUV demand

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

Im credit: Unsplash

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

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

Tesla’s entry into India

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

Elon Musk with PM Narendra Modi | Im 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 reports, Musk is likely to officially anunce Tesla’s entry into India in his forthcoming visit to India. 

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