Nifty Auto index has been under selling pressure, down over a percent on February 18, dragged by heavyweights Mahindra & Mahindra, Tata Motors among others, as reports show Tesla is firming up its India hiring plans.
The global EV major Tesla’s India hiring is a sign of a potential re-look at an India foray down the road, thus intensifying competition in India’s premium EV space. Despite the report, analysts remain cautious about Tesla’s immediate impact on India’s auto sector.
Tata Motors slipped 1.76 percent to touch an intraday low of Rs 674.50. The scrip settled at Rs 682.50, down 0.60 percent.
Mahindra & Mahindra declined 2.19 percent to Rs 2,770 per share on the NSE, extending its losing streak to seventh session, during which it has fallen over 13 percent. The counter settled at Rs 2,780.95 apiece, lower by 1.80 percent. Bajaj Auto also fell 1.4 percent to an intraday low of Rs 8,417.55 per share. The stock settled at Rs 8,445.80, down 1.07 percent.
Tesla’s India hiring push includes 13 roles across customer-facing and back-end functions, and the move comes after Tesla CEO Elon Musk met Prime Minister Modi during the recent US visit.
Parthiv Shah, Director at Tracom Stock Brokers said while India’s EV sales are growing rapidly on a smaller base, the charging infrastructure is still underdeveloped, limiting any near-term disruption by a new player’s entry.
"India already has players like BYD and Hyundai in the EV segment, but domestic automakers such as Tata Motors have demonstrated stronger penetration in the market. Tesla is more likely to focus on the luxury EV space, whereas the highest demand currently exists in the Rs 10-25 lakh price bracket, where Tesla does not yet have a model," Shah said.
Sanjeev Hota, Head of Research at Mirae Asset Sharekhan too said Tesla’s entry is unlikely to materially impact India’s automotive market in the near term.
India has taken steps to lower customs duties on high-end cars priced above $40,000 from 110% to 70%. Tesla, which previously stayed away owing to high import duties, may now be re-looking at its India plans.
Tesla hires in India, signaling entry plans after Modi’s US trip
India’s EV market is at a nascent stage compared to China, with around 100,000 electric cars sold in 2024 against China’s 11 million vehicles. Tesla’s India foray could provide an avenue for growth at a time when it has reported its first annual decline in EV sales in over a decade.
Mahindra & Mahindra’s recently launched electric SUVs – XUV E9 and BE 6 – have reported strong demand amounting to a total booking value of Rs 8,472 crore (ex-showroom price).
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