Specialist
Manager at Hyundai Motor India Ltd
Agenda
- Market growth trends and consumer purchasing behaviour
- Competitive dynamics and Tesla’s (NASDAQ: TSLA) entry
- Existing supporting infrastructure and roadblocks to EV (electric vehicle) uptake
Questions
1.
Existing supporting infrastructure and roadblocks to EV (electric vehicle) uptake
2.
You said you expect 50,000 EV sales in 2021, up from 4,000 in 2020. What do you think will drive that?
3.
Mahindra and Tata Motors are launching the two new models expected in 2021. Do you expect those companies to increase their EV market share, especially given the 30,000-50,000 sales you anticipate?
4.
What is the ASP on key EV models sold in India? How does that compare to the average pricing on BS-VI compliant traditional vehicles?
5.
Which EV models are the premium offerings in the mass and luxury markets? What would be the ASP for those models?
6.
How would you describe the purchasing behaviour of EV consumers? How has that trended? What factors do consumers prioritise?
7.
How would you split the EV fleet between government, fleet owner and private owner?
8.
How would you describe competition in the EV market between major OEMs [original equipment manufacturers]? How does the market share split and how has that trended?
9.
What do you expect Tesla’s India strategy to be? Its entry announcement is big news, with the relevant minister reporting that it seeks to build a local manufacturing plant in Karnataka.
10.
What opportunities do you think Tesla identifies in India, given the low EV adoption rate and the lack of widespread infrastructure?
11.
How do you think Tesla will approach distribution? Is it likely to develop its own distribution model in India, or will it work through dealerships?
12.
You mentioned Tesla will probably start by importing Model 3s that are built in China, for which you expect a price point of INR 55-66 lakh. How might building a local plant impact that price point? Would a Model 3 have a lower price point if it is produced in India?
13.
How might that translate to the cost base or the pricing range you would expect?
14.
Would you say there is insufficient local manufacturing capacity for key components and parts in India to support a local Model 3 production plant? You seem to think a lot of value chain localisation is required for Tesla to support Model 3 local production.
15.
Would Tesla be the first EV player to produce an EV locally? Are the other players importing?
16.
What cost advantage could Tesla get from manufacturing in India vs supplying the broader Asia region from China? Is there a material benefit to producing in India, or is there too much cost and investment required when localising the appropriate manufacturing components?
17.
Is there any benefit to running Indian operations as an export centre, such as satisfying local Indian EV demand, having local cost advantages and then exporting to consumer centres across Asia?
18.
Do you think Indian consumers are ready for Tesla products and its high price point? We discussed INR 66 lakh as the higher-end of the range we might expect.
19.
How do you think major players – such as Tata Motors – will react to Tesla’s entry? Do you expect aggressive pricing and discounting to try to attract and maintain market share?
20.
How adequate is the supporting infrastructure in India, such as EV charging stations? Are there key challenges that could bottleneck industry growth?
21.
Should we consider infrastructure as one of Tesla’s roll-out challenges in India? Does it have to invest in the appropriate charging infrastructure as well as onshoring or localising a large part of the value chain before it can start rolling out products?
22.
Is India’s existing EV infrastructure suitable for Tesla products? Would Tesla require more specialised electric charger infrastructure?
23.
Do you think a home charger-driven penetration strategy would make Tesla products less attractive to private consumers who might have to provide their own charging infrastructure?
24.
How do you expect India’s regulatory framework around EV infrastructure to develop? Could it incentivise more infrastructure growth, or will that be driven by players such as Tata seeking to grow its brand?
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