Indian business tycoon Sajjan Jindal, Chairman and Managing Director of JSW Group, has dismissed the likelihood of Tesla CEO Elon Musk achieving success in India. While speaking at the Ernst & Young Entrepreneur of the Year awards on Wednesday, Jindal joked that while India offers a thriving environment for entrepreneurs, he remains sceptical about Musk’s ability to navigate the country’s business landscape.
India offers the best platform for entrepreneurs, says Jindal
Jindal, who is expanding into the automobile sector, emphasised India’s immense potential for entrepreneurs, asserting that the country provides a better platform for business success than anywhere else in the world.
“I don’t think any country in the world provides the kind of platform India does,” he stated. “No one can stop you from being successful.”
He also expressed strong confidence in his own automotive ambitions. “I’m putting my heart and soul into the auto business, and I’m 100 per cent sure it will be super successful. There’s nothing that can stop me. This country needs a huge amount of autos, huge amounts of good quality stuff,” he added.
Why Musk “cannot succeed” in India
When asked about Elon Musk’s potential in India, Jindal was blunt in his response. “Elon Musk is not here. He is in the US,” he remarked before declaring, “He cannot be successful in this country.”
Drawing comparisons between Tesla and Indian automakers, he stated: “We Indians are here. He cannot produce what Mahindra can do, what Tata can do. It’s not possible. He can do (it) under Trump’s shadow in the US.”
While acknowledging Musk’s remarkable achievements, Jindal still questioned his ability to replicate that success in India. “He’s super smart, there is no question about it. He’s a maverick, doing spacecraft and all that. He’s done amazing work, so I don’t want to take anything away from him,” he conceded. “But to be successful in India is not an easy job.”
Jindal’s remarks come at a time when his company is making significant strides in the auto industry, including a joint venture with Chinese automaker SAIC to manufacture cars under the MG Motor brand. He also has plans to launch a fully owned electric vehicle (EV) brand.
Tesla faces tough competition from Indian automakers
Jindal is not alone in his scepticism regarding Tesla’s prospects in India. Amitabh Kant, India’s G20 Sherpa and former NITI Aayog CEO, also expressed doubts about Tesla’s potential dominance in the Indian EV market.
Speaking at the Business Standard flagship event BS Manthan, Kant asserted that homegrown EV manufacturers such as Tata Motors and Mahindra would make it difficult for Tesla to establish itself.
“Tatas and Mahindras will not allow Tesla to succeed, their prices are very competitive,” he said.
Kant, who recently switched to an electric vehicle himself, revealed, “I drive an EV and have just booked a Mahindra EV.” He also urged more Indians to embrace electric vehicles, stating, “Every Indian should move to an EV, and the government should not buy any fossil fuel cars.”
Tesla’s push into the Indian market
Despite such concerns, Tesla is actively preparing for its entry into India. The American EV giant has recently signed a lease for a 4,003-square-foot showroom in Mumbai’s Bandra Kurla Complex (BKC), one of the city’s most prestigious business districts.
The five-year lease, beginning in February 2025, will cost Tesla approximately $446,000 (£350,000) in its first year, with annual increases of 5 per cent. The showroom will be located near an Apple retail store at Jio World Drive, owned by billionaire Mukesh Ambani’s Reliance Group.
In addition to securing retail space, Tesla has begun hiring key personnel in India, including store managers, service staff, and customer engagement professionals.
High tariffs: A major challenge for tesla in India
One of the biggest obstacles Tesla faces in India is the country’s steep import duties. At present, fully built imported EVs attract tariffs exceeding 100 per cent, significantly inflating costs and making it difficult for Tesla to compete in India’s highly price-sensitive market.
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Musk has been vocal about these high import duties, frequently urging the Indian government to lower them to facilitate Tesla’s entry. Former US President Donald Trump has also advocated for reduced tariffs on American car imports. However, the Indian government has so far been reluctant to cut duties, as it seeks to promote domestic manufacturing and protect Indian EV producers.
India must strengthen its global role, says Jindal
Beyond the automotive sector, Jindal stressed the importance of India strengthening its position in the global supply chain.
Referencing the shifting nature of global trade and US trade policies under Donald Trump, he remarked, “Trump will come and go. We need to focus on making India part of the global supply chain.”
Highlighting India’s growing role in international markets, he added, “We are already a very good supply partner for the world. We need to expedite that.”
Conclusion
While Tesla is making concrete moves towards its long-awaited entry into India, industry leaders such as Sajjan Jindal and Amitabh Kant remain unconvinced of its success. With tough competition from local automakers and the ongoing challenge of high import tariffs, Musk’s ambitions for Tesla in India may prove to be more difficult than anticipated.
As India continues its push for self-reliance in EV production, the coming years will determine whether Tesla can carve out a space for itself in one of the world’s fastest-growing automobile markets.
