Individual Proposal Guide The individual proposal is focused on the entry of a product or service into a selected country where the product/service is currently unavailable. Students need to use...

Launch
Of
Tesla Giga-factory
In
India
Table of Content
    S.No.
    Topic
    Page No.
    1
    Executive summary
    3
    2.1
    Tesla Inc. details
    4
    2.2
    Indian market and market entry strategy
    5
    3.1
    Analysis of the India’s broad environment
    6
    3.2
    Market segmentation and target market
    6
    4.1
    Internal analysis of the Tesla in the India
    7
    4.2
    External analysis of the Tesla in the India
    8
    5
    References
    9
    6
    Appendices
    12
1. Executive summary
Tesla Inc. is an electric car manufacturing company with global presence in several countries and must move to Indian market based on the opportunity trends available that would be much beneficial for growth of Tesla. There has been rapid growth in automobile industry for electric vehicles more specifically because of the entrepreneur engineer celebrity revolutionist, Elon Musk and his Tesla motors. His idea of elimination of the inefficient as well as conventional yet famous IC engines was in talks since long but it was Musk who worked on it impulsively and brought revolution in global auto industry. Also, over the passage of time, the cost of Li-ion batteries has gone down because of the inclusion of electric vehicles in industry and increasing EV trends. India is a growing economy with the availability of cheap labor as well as government support that does have inclination towards e-vehicles. A new perspective in form of electric cars can be offered to India in the automotive industry as this would help in reduction of pollution level and is certainly more futuristic. The global automobile industry is observing a great shift towards electric mobility over the past decade thus there is a rapid increase in interest towards electric cars in India. Also, the Indian government is much determined towards saving fuel costs by offering consumer advantages and bonuses towards promotion of electric vehicles in India as it is expected to reduce the emission of pollution to great extent. This proposal would help to study growth of Tesla since its establishment, details about Indian market and economy along with internal and external analysis of India to understand the target market and market strategy to be applied for entry of Tesla. Further, for expansion of Tesla by launch in India is done.
2.1 Tesla Inc. details
Tesla Inc., formerly Tesla Motors established in 2003 is an automobile manufacturer of electronic cars based in America. It was founded by Martin Eberhard and the Marc Tarpenning and was named after the Serbian American inventor Nikola Tesla. At initial stage, Tesla motors development was carried out for e-sports car with funding from various sources with major contribution from Elon Musk approximately $30 million in year 2004 when he served as chairman of company (Myles, 2012). Tesla motors were renamed to Tesla Inc, in year 2017. Its growth from 2003 to 2017 is as follows-
A three tiered strategy was applied initially for effective e-cars creation wherein the first phase included sports car release with aim to gain return on investment followed by second stage wherein a sedan worth $60,000 was sold and finally sold sedan worth $30,000 to masses to earn huge profits. Release of first phase took place in year 2008 where the Tesla Roadster was launched being little more expensive than expected and was being sold in market for 4 consecutive years before seizing its manufacturing. Second phase included Model S production with release in year 2012 (Myles Edwin Mangram , 2012). This product was priced high at $74500 but was first e-vehicle marketed in mass. Model 3 has design similar to that of model S but intention was to manufacture it such as to meet the market needs with the initial price of $35000 with consideration of inflation.
2.2 Indian market and market entry strategy
Indian economy is quite open to embrace the electric vehicle manufacturing as it aims to move towards complete electric mobility by the year 2030 because of the alarming pollution indices that has been increasing day by day along with the expensive crude oil imports. To add to this, the incident of Delhi, capital of India in December 2017 where capital was in red alert and came really close to Beijing in pollution toxicity level shaken the Indian market to incline towards the usage of electric vehicles even more. As India ranks 3 in global emission of greenhouse gases, there is need to control pollution level and the only solution to this that seems feasible is use of electric vehicles. As per research, if India turns to electric vehicle 100 percent successfully by the year 2030, emission of about 1 Giga Ton could be saved. Further, the revolution by Elon Musk in the west motivated as well as pumped in ideas for Indian government to switch to e-vehicle to solve this situation. Another major reason to choose India for Tesla Inc is crude oil expenditure. India imports yearly approx $100 billion crude oil accounting for around ₹ 700,000 Cr giving an average of $330 million per day on gas and oil causing a lot cost to India and as ICE re not much efficient, money is wasted due to energy losses. In contrast to this, 80 percent efficient traction motors seems to be better deal where government is in total support thus entry in Indian market would be easy for Tesla Inc. Also, India can help to transform electric vehicle culture in countries such as Nepal, Iran, and Afghanistan etc that means cash flow for India. This can be further advantageous for...