This report summarizes the management of Tesla for a decision to venture into the Indian market. Among the key factors highlighted in the discussion include; the factors considered in making the determination, the cultural sensitivities of launching in the country, and evaluating the economic and political risks.
The factors you used to make your determination
Various factors have influenced the decision to advocate for Tesla to launch in India. One of the key factors of the huge market potential in the country. India is one of the world’s most populous countries (Joseph & Singh,2013) . Also, the income pa capita in the country has been on the rise in recent years. Therefore, this presents a great potential for the company while launching its product into the market. The high population with disposable income presents a great opportunity for Tesla to convert them into customers for electric cars.
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Also, India has clearly illustrated its commitment to green energy. Tesla has become one of the world leaders in the production of electric cars. This has dramatically influenced the consumers' opinions about the cars produced (Joseph & Singh,2013) . With the changing tastes and preferences of consumers and the government of India in favor of electric cars, there is great potential for the company once it introduces its products in the new market.
Cultural sensitivities of launching in the selected country
Various cultural sensitivities need to be considered while launching the product into the Indian market. One of India's main aspects of culture that is essential to be considered is the shift in lifestyles among the country's young population. In recent times, the Indian youths; that forms a majority of the country’s population, have significantly shifted towards a more Western lifestyle regarding their purchase. There is a shift from a conservative approach to luxury and comfort (Mankodi, 2016) . Young people are willing even to pay more so that they can enjoy luxurious goods. Therefore, when introducing Tesla car models into the country, the aspects of luxury and comfort.
The cultural changes in India have also impacted who makes the financial decision in the families. In the past, parents made the majority of financial decisions as the children were mostly dependent. However, in recent times, young people have become more financially independent (Mankodi, 2016) . Also, more nuclear families have emerged. Therefore, when marketing the new car models in the country, Tesla should focus on appealing to the young, financially independent population, most likely to be the main customers.
Evaluation of the economic and political risks
Various economic risks may emerge as the company ventures into India. Among the major threat is the increased appetite for credit in the country (Adnan, Ahmad, & Khan, 2017) . In recent years, the Indian population has increased demand for credit utilized to purchase assets they cannot afford to purchase in cash. Therefore, this creates a major risk for the company as it may tend to default on the loans to purchase cars. This may pose a challenge to the company as it seeks to find customers to resell the cars that have been repossessed.
From a political perspective, one of the main risks is the Indian government's approach towards car manufacturing by Tesla. The Indian government suggests that Tesla sell cars in the market it has to produce in the country. Additionally, it has required that 30% of materials used are locally sourced ( Lambert, 2017). To a great extent, this would be a major risk due to quality control. Another risk is the inadequate infrastructure of charging stations in India ( MISRA, 2020). The government is yet to invest in the development of charging stations that would support Tesla cars.
Reference List
Adnan, A., Ahmad, A., & Khan, M. N. (2017). Examining the role of consumer lifestyles on ecological behavior among young Indian consumers. Young Consumers Insight and Ideas for Responsible Marketers 18(3):00-00 . DOI: 10.1108/YC-05-2017-00699
Joseph, S., & Singh, V. (2013). Changing lifestyles influencing Indian consumers: conceptualizing and identifying future directions. Global Journal of Management and Business Studies , 3 (8), 861-866. https://www.ripublication.com/gjmbs_spl/gjmbsv3n8_06.pdf
Mankodi, K. (2016). Innovation for Creating Sustainable Lifestyle Brands: A Case Study. Available at SSRN 2772081 .
MISRA, S., 2020. Elon Musk’s Tesla are headed to India, but there won’t be any green car revolution here. https://theprint.in/opinion/pov/elon-musks-tesla-are-headed-to-india-but-there-wont-be-any-green-car-revolution-here/525953/.
Lambert, F., 2017. Elon Musk explains why Tesla is not selling in India, gov says they should build a factory. https://electrek.co/2017/05/23/tesla-india-factory-elon-musk/ [Accessed 27 October 2020].
