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Mercedes-Benz is not worried about Tesla’s entry in India

Tesla is soon going to enter the Indian market and make its move into the Indian market. Seeing the pace at which Tesla is growing, it is evident that the brand’s entry in India might instill fear among other manufacturers. Well, at least for Mercedes-Benz, that is not the case. In fact, the premium car brand explicitly said that they are not worried about Tesla’s entry into India. Instead, they are happy that the car brand’s entry will help normalize the use of Electric Vehicles in the country.

Why is Mercedes-Benz not worried?

Mercedes-Benz

Image Source: Mercedes-Benz

As of now, Mercedes-Benz is the king of the premium cars segment in India. And the head of the company in India said that Tesla doesn’t pose any threat to them. They believe that their brand has a strong-hold in the Indian market. And even though Tesla is growing at a fast rate, it won’t be able to affect Mercedes’s niche target audience. It does make sense; if a wealthy individual wants to get a premium car, they will probably choose a Mercedes over a Tesla. Another probable reason Mercedes isn’t worried about Tesla is that they already know what affluent Indian customers want.

Tesla is not mainly known for its superior interior design or build. While on the other hand, Mercedes makes cars with much better build and interior. An Indian consumer looking to buy an expensive car will choose comfort, design, and a premium feeling over technology. And that is why Mercedes wins here too. Plus, the company has already been competing with Tesla in other countries like the US, China, and more. And till now they didn’t face any specific problem.

How does Tesla plan to sell its cars in India?

Model 3 | Tesla

Image Source: Tesla

Tesla has already registered its Bengaluru office and has appointed three directors. The company also plans soon to set up its manufacturing plant in the country. And till then, it will import the vehicles from the US. The company will also enjoy benefits that the Indian government is offering to customers purchasing EVs. This is by reducing the GST from 28% to 5% on the purchase of Electric Cars, and also several tax benefits. The Indian government is also offering free land for the company to set up manufacturing plants in the country and create jobs.

Yesterday, the Rajasthan government offered free land to the company for setting up a factory. Though, as of now, there has been no reply regarding the same from the company. There are also rumors that Tesla may tie-up with Tata Motors to manufacture their cars in India. And this evidently resulted in the massive price hike of the company’s share. Let’s wait and see what the company does and the tactics it employs to sell its EV to Indians.


Do you think Mercedes-Benz should be worried about Tesla’s entry into India? Or is their confidence justifies? Let us know in the comments below. Also, if you found our content informative do like it and share it with your friends.

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