Tesla, the famous electric car company, is planning to set up shop in India. Some people worry this could hurt Indian car companies like Mahindra & Mahindra (M&M). However, market expert Sandip Sabharwal believes those worries are exaggerated. He thinks the recent drop in auto stocks is not reasonable.
M&M has been seeing a lot of excitement for their new cars, with demand reaching over Rs 8,000 crore in just one day! This shows that customers still want M&M cars, even with Tesla entering the market. Tesla plans to make 8,000 cars in India, but they need to invest Rs 4,500 crore to get benefits from the government. This news has made some investors nervous, but Sabharwal says there’s no need to be.
He points out that Tesla is different from local car makers. While some people might buy a Tesla for its brand, many others might find it too expensive and difficult to maintain, especially with issues like charging stations. For Tesla to compete well, it needs to establish good service and support in India, which will take time.
Indian automakers, especially M&M, have strong ties with their customers. They offer reasonably priced cars and have a wide network of service centers across the country. Plus, M&M is already ahead in making electric vehicles that are perfect for Indian roads and tastes.
Looking ahead, Sabharwal believes that the auto market will bounce back as people continue to buy cars. He expects a strong recovery in 2025, supported by the growing demand for vehicles.
In conclusion, while the buzz around Tesla has made some people nervous, companies like Mahindra are still strong and ready to compete. The dip in auto stocks might be a chance for investors, as Indian car makers are likely to remain popular despite Tesla’s entrance.
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