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N
PRE S E N
TS

Tesla’s India Go-to-

market Strategy
- A n o u t s i d e - i n pe r s p e c t i v e

W e a r e h e r e
Business Understanding Proposed Strategy Go-To-Market
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Content
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s 01 EXECUTIVE SUMMARY

AS-IS LANDSCAPE 02
03 LEGAL FRAMEWORK

CUSTOMER STRATEGY 04
TESLA
T o a c c e l e r a t e t h e a d v
05 ENTRY STRATEGY

e n t o f s u s t a i n a b l e

t ranspo rt
PRICING STRATEGY 06
07 EV VALUE CHAIN

INROADS TO THE FUTURE 08

Supporting Annexure Slide
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Executive
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Following is a brief overview for setting up the Tesla business in

Tesla Key Objectives:
India: Summary Path to profitability

Targeting the right market Charging infrastructure Technological Capability Scaling operations
Defining the target market Tackling the charging infra
Defined the various segments of Critically evaluated alternative
Target market with specific needs & approaches towards a robust charging
purchasing power in the Indian Market infrastructure & finalized on 4-
dimensional ecosystem
Focused customer strategy Supply chain & distribution
Developed in-depth customer Leveraging Tesla’s existing
acquisition, engagement & retention advantage of vertically integrated
strategy to achieve sustained value supply chain to effectively expand
distribution model
Sketching the Product launch Gazing at the competitors
Envisioned a phase-wise product launch Assessed the competitive fabric of
process to build the required trust & Indian automobile industry & drew
credibility w.r.t the socio-cultural parallels with incumbents like Tata
landscape motors
Setting up the pricing mechanism Building the future roadmap
Synthesized a pricing model to arrive at Chalked out the future steps for Tesla
the expected launch prices & identified management highlighting strategic
the risks prevalent specifically in the trade offs to enter, grow & succeed in
Indian context India

Tesla can enter in the luxury segment, establish their foothold & later scale up to the mass market with more affordable
cars
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As-is Indian EV
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As per current forecasts, India is expected to realize only 10 - 15 % electric cars

penetration
Why EV? by 2030 .
Landscape
Why India? Why EV in India?
EV (Futuristic) vs ICE (Traditional)

03 04
1.6 Million deaths Dire need to
Air Pollution India accounted for reduce oil
Strengthenin
g energy
more than 25% imports security
deaths world- wide 02
05
due to air pollution in
ELECTRIC
2020 90% potential
VEHICLE Climate Crisis 2020 was the 8 th growth to Key role as a
EV battery
SUPERIORITY warmest year on
$150B by
recycler
2030
record and 2011-
2020 the warmest
decade ever 01 06
Stress on Natural Resources
Inefficient Sustainabili
50 Years until we petrol & diesel ty
run out of both out and run vehicles issues
natural gas remaining,
Promotes Circular 115 years of coal
production
Economy Indicative infrastructure landscape
India Progress benchmarked with the world Global leading practices to promote EVs
(EV to EVSE ratio across the globe)
India vs International EV Landscape

Nearly 20% EV The National Electromobility Zero Emission Vehicle

adoption in similar Development Plan, Executive Order, 2018
economies like China, 2009
proactive green Aim to put zero
Cross sectoral initiative
EV adoption rate

governance emission vehicles and

environment targeting infra on road
market leadership in EM by
Only 1.66% EV
2014 Automobile Industry
2022 National Environment
adoption rate in Strategy Strategy, 2020
India, reactive green Promotion of next-gen Manage & promote
governance vehicles and increased land transportation to
environment R&D & HR with
be safe, convenient &
innovation focus
sustainable. 3-12 EVs 25-30 EVs
per charge per charge
point
3-6 EVs point 14-17 EVs 6K-8K EVs
Time horizon per per charge per charge
charge point point
point
Source: Policies to promote electric vehicle deployment – Global EV Outlook 2021 – Analysis - IEA, 2021; Niti.gov.in. 2021, Available at: https://
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Evolving Industry
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Landscape
Following is a bird’s eye view of the EV space which is expected to shape the future of mobility
solutions in India:
Overview: EV Sales in India (A snapshot)
The Electric Vehicles market in India has huge potential for growth with an extremely positive *Absolute numbers (units)
outlook owing to robust automobile industry, mass adoption forecasts & conducive general
environment Segment FY’20 FY’21 Change
23.4%+ ~$12.6 billion
~$5.47 billion 3,400 5,905 +74%
CAGR (E) (expected
(2020) investment
‘21-’26 over next 5 years)
152,000 143,840 -5%

600 450 -25%

1000+ Public ~1.3% of total vehicle
charging sales (‘20-’21) Note: Figures don’t include e-Rickshaws; numbers affected by Covid-19 pandemic
Source: Quartz; SMEV; India Briefing; Frost & Sullivan
stations
Growth drivers & Future prospects Core characteristics Top industry players
Carbon emission Local manufacturing
targeting & ecosystem
compliance development

NEMMP ‘20 Capacity

Govt. promotion building &
scheme private
investment
Custom Emerging
duty on technolo
Collective shift gy
towards clean Tax exemptions Huge market imports Demand Need to
to EV makers potential in push by develop
mobility
India authorities support
services
Source: Battery bits; Transportpolicy.net; Business Standard; India Briefing; Society of Manufacturers of Electric Vehicles (SMEV); Mordor Intelligence; The Startup
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As-is Company
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Following is the snapshot of current positioning of Tesla in the Global EV market:

Tesla’s Business model Overview Competitive Positioning Company Details

Electric vehicles  Three-pronged approach to Founded: 2003 CEO: Elon Musk

Broad
selling, servicing and charging Countries Served:
their electric vehicles • US • Canada
 Vertically integrated supply • UK • Netherlan
chain, superior quality, • China ds
• Norwa •

Narrow
design and performance Germany
TESLA
 Targets high end clients that y • Switzerlan
• France
Employees: d
Sales: 31.5Bn$
value performance and are
70757
Market Cap: $1.03 (FY21)
Superchargers Servicing environment conscious Cost Leadership Differentiation
Trillion

SWOT Analysis Competitive Strengths Brand wise %Sales & Range

Strengths Weakness High Tesla dominates the global EV
• Energy • Limited First Mover space in
Advantage Innovation
Efficiency Presenc Focus terms of both range and sales
• Partnership S e Pioneer in
• Highly
W • Premiu EV Automation 5%
14. 12.5
%
innovative m market and quality 5.79
improvement %

%Sales
• Sturdy Brand Product 4.97
Opportunity
Image Range
International %
Threat
• Autonomo O T • Successio
• Increased
Brand
us Driving n Recognition Vertical
Competiti Integration
Technology Strategy
on Highest sales
• Environmen • New in EV Battery
t- friendly technologi Ownership manufacturin
• cars
Batter g plant
es based selling 412 373 336 300
Productio
y • Long Term (Gigafactory)
n
and Tesla BMW VW Hyundai
Sustainabili distribution to sales
Technolog Range
Source: “What Makes Tesla's Business Model Different?”, Investopedia; ty
y
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As-is EV Challenges In
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Following is a summary of major problems associated, based upon our understanding & the interviews
conducted: India
Challenges Faced We reached out to experts in the field to capture their voice.

Voice of experts
08 01
Customer ” I have studied electric mobility in detail both, in India & in
Environment Electricity supply apprehensivene Germany. The major differentiating factor between the two
Range anxiety
al ss
Demand- Worries geographies is the consumer phycology. On one hand, in India
concerns supply relating to
mismatch for the distance 02
the value of a vehicle is perceived to be purely in monetary
07
electricity, EV coverage
to furthe
push this
terms whereas here in Germany, people value non-monetary
before the Weak consumer
Lack of awarenessgapr battery runs aspects including environmental sustainability before making
perception
The is lack of out
Apprehensive Health hazard the decision, as a responsible consumer.” ~ Jaskirat
proper
awareness across consumer
value chain relating ICE
Problems sentiments and Singh
Weak legal & primarily, the lack of resale vehicles
vendors & associated with EHS & Sustainability Specialist
regulatory assurance
consumers current EV setup Boehringer
“The problem with EV adoption, and the climate crisisIngelheim
is that it is
framework 06 03
in our country considered national as of now. Considering the future impact of
High prices
Lack of products mobility, we should see it an international problem and
No price parity
Limited EV for e.g., up to collectively formalize the system to increase its adoption.
choice
available 05 04
50% EV Inefficient Commitment to pacts such as The Paris Agreement will play a
premium for
with the
custom same model of
er
pivotal role in effort convergence.” ~ Vandit
Scope of FAME Scarce battery car infrastructu
technology re Micro Masters, Bhayana
Circular Bio-
Inadequat Inadequate Economy
e incentivizati
Indian reliance
Wageningen University &
on imports for
resources on &
lithium- ion
“The current policy focus should also include having adequate
Research
& coverage of
batteries EV supply infrastructure, fast charging stations, smart grids, and
FAME policy
technolog
benchmarking Indian policies with that of leading countries like
y Shortage of
funds Norway, China to achieve the aggressive 30% EV target with the
Lack of channelized stipulated timeline.” ~ Akshay
contribution to Inefficien
t Mandar Sustainability
Socio-economic
Consultant, EY
development processe
s
Source: Primary
interviews
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Legal & Regulatory

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y Details
Fo l l o w i n g is a bri e f o v e r v i e w of the existing e l ect ri c m o b i l i t y landscape in the
Framework
country:
Current EV governance landscape Shortcomings in achieving the EV vision 2030

FAME 1 & 2- Demand side incentive policy, focus on YoY increase in sales of electric

360%
boosting demand via subsidies, rest spent on
infrastructure development, includes hybrid electric vehicles, though lagging in
vehicles & Electric vehicles, at least on charging grid in 3 terms of absolute numbers
x 3 km grid in cities, charging station every 25km on
highways, lowering of GST on EVs from 28% to 12%
Lack of standardization Inadequate incentivization
State policies: Differ in terms of Battery accounts for almost 40%
targets and incentives, common lifecycle ownership cost,
Extended Product Linked Incentives -
42.5KCr
expected new goals not present manufacturing locally will help
Supply side incentive to domestic manufacturers, investments in the lowering costs
Automobiles and
Advanced Chemistry Cell(ACC) battery manufacturing approved
EV space by 2026
under PLI in Nov 2020

State Policies - 14 states have

their own EV policies, focus on 2
wheelers and 3 wheelers and public
transport
50% states offer subsidies on 2
wheelers and 4-wheeler
based on battery
Manpower management
Loss of jobs in ICE components
Underdeveloped infra.
No subsidy for battery swapping,
capacity industry & related manpower issues public charging stations density
in automotive not addressed very low, not enough incentive
for private players
Vehicle Scrappage Policy - Stringent
52L
vehicles eligible for
fitness tests for vehicles older than 15%, discounts in new scrapping , expected 30%
vehicle and road tax rebate against scrapping certificate,
setting up of scrapping centers boost to Indian
automobile segment

Other subsidies & stimulus - Power generation Data security concerns

48.8% CAGR
include waiver / concessional road tax, estimated in
exemption from permit, waiver / concessional public vehicles Inadequate power generation in EVs function with multiple sensors &
toll tax, waiver / concessional parking fees, space by 2025 India currently, need to meet utilize data points, security of this
concessional registration charges. increased electricity demand for data to be taken under review &
charging of EVs policy formulation

“Even if producing CO2 was good, given that we are going to run out of hydro-carbons we need to find sustainable means of operating.” - Elon Musk
Note: Please refer slides in the annexure for to-be regulatory & policies changes to scale up the EV adoption rate in the country.
Source: Policies to promote electric vehicle deployment – Global EV Outlook 2021 – Analysis - IEA, 2021; Niti.gov.in. 2021, Available at: <https://
www.niti.gov.in/sites/default/files/2021-08/HandbookforEVChargingInfrastructureImplementation081221.pdf>
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Target Customer
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Following is a categorical analysis of targeted customer cohorts to generate

eff ective demand:
EV enthusiasts
Profiles
Luxurious car owners
Upper middle-class families
 Early adopters – tech focused  Purchase as a status symbol  Utility focused buyers
 New tech & features are  Superior design is primary  Cost benefit is primary
primary driver driver
 Willingness to pay:  Willingness to pay:  Willingness to pay:
B2C

0 100 0 0
100 100
Tesla positioning:
  Best-in-class looks &  Lower lifetime ownership cost
Superior full self driving Tesla positioning: Tesla positioning:

tech appearance Ecologically sustainable & fuel
 Access to Tesla  High end Tesla brand experience efficient
ecosystem  Worthy addition to existing  Upgrade in the standard of living
 Regular first hand collection
updates
Central Government State Government & Agencies Corporates
 High power to build EV market  High power to localize EV  High power to create scaled
 FAME policies; regulatory ecosystem demand
incentives  13 adopted; draft policy in 4+  Govt. incentives; stakeholder
 Potential order volume: states push
B2B


0 Potential order volume:  Potential
0 order volume:
100 100
0 100 Active lookout:
Active lookout:
Active lookout:
  Sustainable ways of
Pollution control focus  Own fleet transformation
 Vehicle scrappage policy  Shift to CNG powered and working
 Intention to lead by EVs  Employee friendly policies
example  Central legislature + self  CSR + Government
incentives
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To-be Customer
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Strategy
Following is a brief overview of customized approach devised for targeted customer
cohort:

Customer Acquisition Customer Engagement Customer Retention

Tesla Customer targeting Creating a best-in-class experience
 Personalized driver profiles with
Vehicle life cycle
High Income

custom settings changed with a Proactively participate in the

button vehicle replacement process of
0
7  Data driven design with integrated customers to enhance repeat
customer preferences & insights purchases & improve retention rate
Priority Priority I (91% retention globally)
 Fully upgradable, dynamic
III
dashboards & automated driver
Low Income

recognition
Service & roadside assistance
B2C strategy Build an expanded network of
Priority IV Priority II  New tech & update beta trial programs service centers and Tesla certified
technicians for prompt & superior
for live reaction & suggestions
 Timely & personalized customer service
Ecologically neutral Ecologically

sensitive recommendations
to improve user driving experience
Pre Orders & Bookings Value added services & products
 Open pre-order option for B2B strategy
Continuously create value for
enthusiasts &  Active participation & support in Tesla users including new tech
early adopters to get a sense of demand
 Customized design & gift bookings Government programs & events updates, digital functionalities
 Targeted corporate communication
to build hype & excitement in new
to facilitate transparent feedback
market
Customer lifetime
Referral & Promotion Engagement strategies For maximum potential revenue
 Provide Tesla owners with a cash  Large scale, High-end launch events generation throughout the customer
payment for each car sold as lifetime, two-way communication
targeted at gaining huge traction
referral  Participate in Luxury auto loop for feedback, improvements,
Source: https:// suggestions & evolution of needs
exhibitions & organize test drive
www.forbes.com/sites/blakemorgan/2021/05/10/3-ways-tesla-creates-a-personalized-customer-experience/?sh=525219523b37. Retrieved
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Product Entry
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Following is the critical evaluation of potential entry models for Tesla in the

Model 3
Indian market: Options
Model 2 Semi
 The Model 3 is an electric fastback mid-size  Often referred to as the ”Baby Tesla”, the unnamed  Tesla Semi is an all-electric battery-powered Class 8
four-door sedan developed by Tesla. model semi- truck in development and set to be launched
2 is set to be launched in 2023 across the globe. in 2023.
 Tesla's Model 3 has become the world's best-
selling plug- in electric vehicle model and had  It’s the cheapest car amongst the Tesla’s existing  Semi could prove a game-changer in the Indian
crossed 1Mn+ global unit sales. product portfolio and could prove to a perfect fit commercial vehicle segment, given the cost-
appealing to Indian mass market. benefits study conducted.
Details: Details:
 Price point ~ $45K  Price point ~ $25K Details:
 Mile Range ~ 272  Mile Range ~ 250 miles  Price point ~ $150K-$180K
miles  Target Segment ~ B2C  Mile Range ~ 300-500 miles
 Target Segment ~  Purpose – Economy  Target Segment ~ B2B
B2C  Payback period ~ 3  Purpose – Utility Vehicle
 Purpose – Luxury  Payback period ~ 2 years
years
 Payback ~ 5 years
Model 3 ~ GTM Entry Opportunities & Risk Model 2 ~ GTM Entry Opportunities & Risk Semi ~ GTM Entry Opportunities & Risk

TOP 3 Opportunities TOP 3 TOP 3 Opportunities

1 Establishing superiority & driving premium Opportunities
1 Segment with highest TAM (Target Addressable 1 Letter of Intent from
2 from niche Building aspirational value 2 Market) Best product market fit i.e., hatchback 2 corporates, Low volume
3 amongst the mass market Proven track 3 to Indian landscape Overcoming Model 3 price- b
record of the model and the company cost inequillibrium challenges

BOTTOM 3 BOTTOM 3 BOTTOM 3

Reservations
1 Unaffordability in the Indian markets due to Reservations
1 Dilution of augmented features in the existing Reservations
1 Scare battery technology & manufacturing
2 high tariffs Relatively smaller size of target 2 line-up Relatively tougher to extend into upper 2 concerns in India Relatively concentrated TAM
3 addressable market 3 class after Model 2 Slow cost recovery and 3 (Target Addressable Market) High cost and
High investment and fierce competition increased payback period for Tesla weaker commercial Evs perception
Source: from incumebents
tesla.com, electricvehicleweb.com-
tesla
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To-be Phase-wise Model

Entry
Pricing EV Inroads
Value to the
Strateg Chain Future
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Strategy
Following is a bird’s eye view of the 3 - year action plan for Te s la to success ful l y enter and succeed the
IndianShort
market: Launc
term ~ 0-12 months
Collaboration with the government,
Medium term ~ 12-24 months Long term ~ 24-36 months
Penetrate the mass market with Model 2, Sustain customer value; Innovate, Grow &
Establishing value chain & Launching Model Monetize from capabilities, customers & Expand into commercial segment with
3 tech Semi
Intense marketing of
Partner with travel
Model 3 as the
companies and Indian
Setup physical aspirational
for the target
must have Brand positioning
state governments for
experience stores of customer
Position Model 2 as people’s fleet transformation Integrate
Tesla to establish segment Expand to
brand for tech savvy Aggressive promotion manufacturing and
presence and gain trust commercial vehicle
target customers supply chain

Sustain
Create a wide Aggressive campaigns to segment, long benefits of Indian
charging Tech advantage establish low ownership cost term engagement auto part industry
infrastructure to of Tesla projects
counter customer Invest resources to build process
and cost advantage In-situ Operations Innovate Retention
anxiety for EVs Model 3 compared to peers
Marketing Setup Indian manufacturing Continuous innovation Focus on retaining
Experience push and Customer traction facility to exploit cost and tax for emerging needs customers with superior
Supercharger stores setup launch advantage of the market after sale service and
Tesla Actively engage with customer infra support
groups to build a long-
infrastructure
lasting relationship

Phase I - Quick Wins Phase II – Expanded offering Phase III - Full Range

1. Going live with limited units of 1. Going live with limited units of 1. Going live with limited units of
Tesla Model 3 targeting the niche, Tesla Model 3 targeting the niche, Tesla Model 3 targeting the niche,
arousing aspirational value for arousing aspirational value for arousing aspirational value for
the mass market the mass market the mass market

2. Full fledged roll out of the Tesla 2. Full fledged roll out of the Tesla
Model 2 across the country, Model 2 across the globe,
targeting the Indian mass market targeting the Indian mass market
with largest TAM with largest TAM

3. Investing in development of
public/ commercial vehicles
solutions from a long-term
perspective basis the traction
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Tesla vs Tata ~ Indian

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Comparing Tesla with Indian incumbent Tata Motors to chalk out competitive
Backdrop
advantages
Tesla’s Strengths: Tata’s foothold:
To accelerate the advent of sustainable transport and Connecting Aspirations
electric technology

Superchargers Lead in Infra solution

Tesla has worldwide network of superchargers, which are Tata has an early over advantage in infra capabilities in
superior in charging time and range and are brand agnostic India. It has established itself as a self-sufficient
player for E2E infra
R&D Advanced Deep Pockets
Pioneer in EV segment and has more invested in tech for Tata has raised 1bn USD from TPG rise and ADQ wholly
long. It enjoys a superior trust and is a leader in self for their EV business and have started heavily
driving technology. investing in R&D
Vertical Integration Synergies of Tata Group
Tesla’s competitive advantage arises from its vertical Tata is a conglomerate and is leveraging its sister
integration model. More control on ideation, design and companies Tata Power, chemical and Elxsi to
product quality. provide an ecosystem..
Regulatory Support Regulatory Partnerships
Tesla’s investment in India is important from economic Tata has strong partnership with central and state
perspective and as such they will enjoy import tariff benefits government in India. It already has contracts
from states for public vehicles.
Global Brand Indian Market Trust
The global presence gives it recognition as well as acts as Tata has been in Indian families across generations. Across
hedge, a must have appeal for the modern enviro- user and suppliers, garners unparalleled trusts
conscious user and share of the mkt
Luxury Segment Cross Sectional
Tesla in India with its Model 3 will be a targeting the Appeal
luxury car segment, sought after by the upper middle Tata with Nexon already has a mass market appeal and
class and top tier will be entering the luxury segment with JLRs 10
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To-be Pricing
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A brief outline of the pricing mechanism to be followed by Tesla highlighting major

challenges
Breakdown of the process strategy Drivers of Price determination
Broad Price Skimming strategy Estimated Prices
Cost coverage
In the first step of the process, Tesla adds up the total Expected to enter the market
As per the current
cost producing the car and other overheads incurred in with a premium pricing model,
regulatory landscape, Tesla
manufacturing potentially decrease it over
Model 3 to cost
time as scale economies are
~Rs. 60L; Model S ~Rs.
Legal payments, Taxes, Duties attained
1.5Cr
For sale in the Indian market, import duties, GST and
other legal & regulatory requirements need to be
added to the cost
No Discount model Govt. Confidence
Showroom Price
After considering all fixed & variable costs, Tesla Expect to adhere to its strict Senior Union Minister
would add a reasonable margin % & arrive at the policy of “one price for all” with Nitin Gadkari said Tesla
final selling price no rebates / discounts for car to be affordable, cost
anyone whosoever ~Rs. 35L
Major concerns faced by Tesla Factors affecting pricing
Competitive Dynamics Total Cost of Ownership
115mm 100% Mass market Tata Tigor Tesla EVs turn out to be ~20%
priced at ~Rs. 13L cheaper than their IC
Low ground clearance Current Import Duty
currently; Hyundai to enter counterparts at a 1.5 lakh km run
Tesla Model 3 has a If CIF value exceeds over vehicle life
with ~Rs. 40L car
ground clearance of $40,000 Tesla lobbying
115mm which is too low with Govt. to get Dominant Design
for Indian roads – concessions being an EV As industry evolves
requiring reconfiguration Battery costs and penetration
Industry characteristics Forex adjusted price increases (~40% by
With a ~390km range
The Indian automobile Current US purchase 2029), market
Tesla Model 3 has a 50
industry has long been price of Standard standards will crop
kWh battery capacity
characterized by low Range Plus Tesla model constituting the biggest Market
upSensitivity
margins & higher volumes 3 is $39,990 <20% of Indian consumers present in
chunk of cost

~6% Net margin ~Rs.

the
Rs. 25L+ segment, high price
sensitivity
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To-be Infrastructure
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Following is a snapshot of the charging stations infra strategy that Tesla can follow
for India: Layout
1. Focus on heavy duty public and commercial vehicles likes buses and mini-buses 2. Micro charging points for parking areas, office location and residential Areas

 Identify nodal zones for public buses and setup mega  Shift in focus for personal use EVs. Focus on locations
charging stations, capable of charging 25-30 vehicles where
together. Allow private agents and logistics firm to vehicles are at standby for than a few hours.
setup mega chargers at their end at DCs.  Charging requirement for regular routine purpose is
 These stations will help I managing grid loads by not daily or frequently. Reduce congestion by
providing
subsidy during non-peak hour usage, limiting the allocating 10% space at parking, offices and
Micro sharing stations residential location to charging
usage to specific localities.
Empowering customers
and increasing
 Public vehicles need 170-180kms of peak convenience
Empowering customers to establish,
usage on one charge intracity. Banking in manage and share charging space. The
this need while enhancing demand price per charge can be
Heavy load optimization decided by the vendors.
estimation.
Swapping and portability
Controlled demand and Invest in tech for portability
3. Long Range charging stations across grid loads. Lower and swapping 4. Swapping Stations and build technology for
highways and expressways cost facility portable super chargers

Long range anxiety

 Long range travelling and range  Invest in emerging technologies to develop
anxiety needs to be address to gain Overcome last bit of small
doubts with stations
trust of consumer along routes
portable superchargers for on the run
consumer.
 At every 75-100 kms installation of charging facilities for Swapping stations require small space, low time
passenger as well as commercial vehicles. Focus on the intensive, less upfront cost and might also lead in battery-
busiest routes first like near metro cities and tourist life improvement. These would be best for small commercial
destinations vehicles like 3 wheelers or taxis.
 These routes can make use of superchargers as travelers  Investing in technology for more efficient portable
would be time constrained. These facilities would be superchargers
costly and can be built in partnership with existing petrol can eradicate consumer anxiety completely. They can
pumps be more
Source: The Hindu; Niti Ayog; Business Standard;
cost efficient and
 Executiv As-is Legal Custome
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Approaches to Charging
Entry Pricing EV Inroads
Strateg Value to the
y Strateg Chain Future
y

A comparative analysis of a self owned vs co l l a bo ra ti ve strategy to infra setup In

India for TeslaSetup
Self Owned Collaborative
Wholly owned and used by Tesla Partnership with major layers in Industry
Better brand image and control Better Financial synergy and adoption

Financial synergy: Financial synergy:

Tesla will have to bear huge capital investment and Development of infra is capital intensive but the benefits is
battle rising competition if it ventures with totally self reaped by multiple stakeholders. Subsidies by gov., and
owned infra model pooled investment can reduce the load.
Control vs Interoperability: Control vs Interoperability:
Much more operational and design control. Higher R&D required for cross brand compatibility, but
Lesser R&D required due to low compatibility customer apprehension regarding interoperability reduced
req & higher exclusivity
Commitment and Risk: Commitment and Risk:
Strategi Very high commitment required for setup as Shared commitment among players, Strategi
c well as maintenance and high sunk cost in reducing business risk for each and c
feature feature
case of market exit reduced barriers to exit
s s
Speed and Adoption: Speed and Adoption:
Lower speed of setup initially and adoption heavily Increased speed of setup and high adoption rate
dependent on sale of Tesla vehicles in India, majorly due to increased interoperability
vicious circle
Brand Image vs Lobby Power: Brand Image vs Lobby Power:
Brand image remains exclusive and tech remains in house Brand exclusivity dilutes but tesla in the consortium gets
but the lobby power of tesla over govt policy reduces much more
lobbying power over favorable regulatory policies.
Overall, a collaborative approach to setting up infra emerges as a better solution for Tesla in Indian
 Executiv As-is Legal Custome
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Setting up the Supply

Entry Pricing EV Inroads
Strateg Value to the
y Strateg Chain Future
y

Chain
Supply chain co nsi dera ti o ns for Tesla while setting up operations in the
Indian market

Tesla factories (Giga factory making batteries) Tesla manufacturing plant Tesla Online + Offline stores Customers

Raw material sourcing Vertical Integration Smart Inventory

Owing to lesser # management
Responsible sourcing of components in
practices including Risk minimization
EVs, Tesla to objective, very little
eco- friendly benefit from
products & ethical inventory on hand,
vertical backward Increase in wait time
suppliers – not using integration by
immoral practices dealt with offering
importing self made additional customization
like child labour batteries, motors, options
Also looking for etc. Better inventory
potential investments Component India poses the Data driven mgmt contributed to
in producing raw procurement threat of high decisions direct savings - 5.3%
materials like Lithium import duties that of sales*
Basic component are to be Ton of data to
parts procured by considered rank suppliers
collaborating with & take
automobile makers decisions base
like Daimler & on production
Toyota; partner with times.
Indian domestic Potential to leverage
suppliers to source a data foundation,
lightweight forged produce actionable
parts & possibly insights & complete
steering wheels the data loop from
Source: *TradeGecko report, Tesla Form 8-K (Financial Statements); pre to post
teslarati.com
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Distribution &
Entry Pricing EV Inroads
Strateg Value to the
y Strateg Chain Future
y

Retailing
Following is the proposed long - term strategy for product distribution & forward logistics in the
Indian market

Organic model Location Exclusivity Service coverage

Set up own
showrooms,
galleries & service
centers in
addition to online
store (Direct
Retailing)

Consumer
Savings in the
benefit:
direct-to-consumer Why not Franchising: Strategic Store locations: The Tesla experience: Superior service delivery:
model estimated
to be 8.6% of Existing distributors:  High foot traffic,  Dedicated stores  Plan to have more
price* high with service centers than
 Conflict of interest in visibility retail exclusive branding showrooms
Control & Brand  Interaction  Organic footprint for  Highly specialized &
selling gasoline & venues with
synergies in
electric cars potential customers better operations control trained expert
integrated  Self-Cannibalization of before they decide and real time PoS data professionals for
distribution system,
business seen as risky which car to buy speedy resolution
high CapEx  Product specialists to  High end Galleries for  Target a service center in
New distributors:
investment major
address customer luxury customer <50 miles of every
concern  Uncertainty of concerns segments customer
expertise  Focus on store experience  Uniformity of service  Digital services such as
related to EV segment rather than selling more and delivery across store finder for easy
 Inability to make a cars showrooms access and prompt
Source: *Goldman Sachs case for discovery
Report
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Success Factors for Tesla

Entry Pricing EV Inroads
Strateg Value to the
y Strateg Chain Future
y

India
Supply chain co nsi dera ti o ns for Tesla while setting up operations in the
Indian market
Sustaining success
Leveraging Assets Scaling Tesla

Customer obsession Data-driven

Strong brand recognition
Compelling, validated value For relevant pipeline of
High awareness & deep
proposition, commercial, offerings, marketing and
trust
branding value points

Ecosystem advantage Scalable and flexible technology Risk Management

Wide reach with customer base Own tech stack, 100% Mitigate risks as an auto and a
and brand automation and decisioning, tech player
strong tech capabilities

Existing infrastructure Agile org and governance Path to profitability

Prior experience, Tesla as the decision Product sequencing while
capabilities, and tech maker, accelerated balancing revenue and costs
superiority stagging
Source: Choi, J. (2021). Emerging Challengers and Incumbent
Operators
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Roadmap to Successful
Entry Pricing EV Inroads
Strateg Value to the
y Strateg Chain Future
y

Laying out the market entry plan towards building a dominant position in the Indian
EV market
Levers for establishment Entry
Market specific
Future outlook: Attaining Scale
Inroads5to - Capital Investment – Set up production & manufacturing capabilities in India
business iterations to
strategic ways - Evolve with the growing market & attain scale economies to expand product
landscape
offerings
4
Operations &
React to competitive stimuli:
supply - Observe competitor strategies and build a robust response mechanism to build
management dominance
- Constant boundary spanning to identify emerging trends & technology
3
Demand management & smooth supply:
Build a long - Successfully estimate demand & make sure there is adequate supply
term leadership - Prepare & execute a successful product launch strategy in a phased
position manner
2
Attain a good product market fit:
- Communicate value proposition effectively to the target Growth &
audience sustenance
- Prepare & execute a successful product launch strategy
1 Competitive
Tackle the General Environment: Landscape
- Lobby with the Government for favourable taxation & import policies
Firm
- Build calling in the Indian socio-cultural fabric of automobiles as a luxury
capabilities
good
Market
acceptance
External
factors
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Strategic Choices for

Entry Pricing EV Inroads
Strateg Value to the
y Strateg Chain Future
y

A comparative analysis of a self owned vs co l l a bo ra ti ve strategy to infra setup In

India for Tesla Tesla Strategic choices that are visible to the overall
market & has impact on Tesla’s positioning in India
Product Model for entry 01
Model 3 recommended for entry, as
the low cost model of tesla. It will
attract the value sensitive yet
02 Supercharging Infrastructure
Collaborative approach positions Tesla as
aspirational customers of India the promoter of EV, enhances image and
regulatory lobbying power

Commercial Vehicle Launch 03

R&D to reduce cost by process
innovation and launch cheaper
commercial EVs.
More profitable segment in
04 State Government Partnerships
India Fostering partnership with states to
supply EVs for public fleet and infra
Giga Factory & Manufacturing setup 05 setup, possible tax rebate and
longer engagements
Take advantage of cheaper labor
market, established auto
component industry and abundant
skilled engineers. In situ
06 India as exporting hub of the region
India has a potential to be Tesla’s
manufacturing area push to enter exporting hub in south-east Asian region
the in the long run. Lesser regulatory
mass market for Tesla risk and lower costs compared
 Underlying choices that are not apparent necessary
to sustain the positioning and grow in the Indian to China.
market
Annexu
re
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Inroads to the future for

Following is high - level view of the aspects to be considered in order to realize the EV
Drivers 2030 target:
of EV adoption
Evolving charging
India Geopolitical implications
International trade
Identified need of EV stakeholders
Energy security Access to strategic resources
& sustainable
energy methods
• Rise of green free
• Transnational • Increase access to
Customers
- EVSE
Evolving and trade agreements global trade & network
Increase in energy
embracing
emerging
dependence
on
• Strategic trade
infrastructure resources
Manufacturers
- Regulatory
Investors
- Profitable
Evolve

technology alliances
renewables
• Energy • Regional stability
support
Stakeholder
business

independence capitalism
Innovate Support G
EVSE operator
o
Reduction in Increase in Congestion
governmental &
v
battery prices to avoidance
stakeholders e operators
Fleet
enhance the
feasibility of EVs support r - Profitable
n business
m
e
Need of the hour to enable EV quick wins Initiatives in Electric Mobility Inroads to the future
n
for India
Click here for detailed roadmap
Indian EV market is expected to reach $47 billion by 2026 with Running cost for ICEs is approximately 3-10 times higher that t
of electric vehicl -
a CAGR of 44%
e E
Develop national Well defined electric Supporting the l
policies & roadmap Enable business mobility roadmap deployment of e
models deployment Focus on
EVs c
t COP 2070
r 2030 commitm
i vision ent
Disincent
c realizatio
Support infra & tech Fin. mechanism
ivizing n
development targeting EV mobility M ICEs
Ramping
up o
b
Robust electricity i
Supporting transit- infrastruc supply l
Supporting the R&D & ture
oriented i
convergence of energy cost deployme t
& transport sectors deployment optimizati y
nt
on V
i
Note: Please refer “Way forward & policy roadmap”
s slide in annexure for
more details. i
o
 Back

Policy
Following is the non - exhaustive l ist of reco m menda ti o ns suggested in the existing electric mobility
policies Recommendations
Recommendations to overcome the existing problems Barriers to be cognizant
Economic barriers
01 Benchmarking
of
Need for external benchmarking with the leading electric  Business viability issues
Ramping up
mobility practices adopted by the countries across the
electricity
capacity &
 High upfront EV costs
globe
supply  Huge and rapid
02 Investment in technology investment in charging
Channelizing funds by investing in technology and tools for infrastructure
making the battery and related components more efficient
Cost optimization
and sustainable Regulatory barriers
03 Increased financial & non-financial incentives &innovation
focus 
Financial assistance in the form of subsidies, reduction in taxes, Characterization of
direct benefits to incentivize the existing and potential private EV charging
players to drive formalization
activity
04 Battery disposal regulations  Tariff related issues
Efficient
Mandatory battery disposal regulations as well as hiring of experts to &  Bureaucracy & red-
conduct life cycle audits ensuring strict compliance with the standards sustainabl tapism
e Technical barriers
05 Public transport licensing support
 Charger standards
Charting incentivization schemes for the public transport players for instance auto drivers, to
facilitate faster EV adoptions and providing them adequate support in faster licensing, and protocol issues
permits etc.  Grid stability issues
06 Inclusive FDI & private investment policies  Battery
Despite allowing 100% FDI through automatic route, strong emphasis on making performance issues
policies more inclusive in lines with global policies to attract more private and
foreign equity investments Non- Informational barriers
07 Robust data privacy & security rules renewable
recyclin
g  Stakeholder
Reliance of EVs on various sensors and collected customer data, magnifies
the need apprehensiveness
for having robust data protection and privacy laws in place.  Lack of awareness
Environment  Range anxiety
al
protection
To truly improve EV adoption and India’s role as a value chain participant, it will need to attract more private investment to the country.
 Back

Way Forward & Policy

Following is a brief overview of an indicative i mpl em enta ti o n roadmap & way forward for the policy
decision makers: Roadmap Policy review & sustain

• Focus on reducing ICE

vehicles from road
• Vehicle scrappage policy 2.0
Disincentivizing ICE
2030
vehicles

Vision realizing & future focus

2022 2027 on COP 2070 commitment
• 30% EV penetration across
Investment in R&D with 2023 the country
focus on cost optimization 2025 • Sustained focus on
• Identify cost efficient innovation and finding
alternate opportunities
battery technologies
• Ensure retail price for a greener economy
• New, aggressive and
reduction of EVs to
SMART future targets
increase demand Robust infrastructure
• Leverage expertise of Ramping up electricity
deployment
institutes of higher supply to match demand
education • Sufficient charging
• Increase production
station with emphasis
capacity to meet
on super fast charges
• Attracting private increased demand due
to EVs
investments • Focus on shift to
• Optimizing density as
renewable power
per demand variation