Strategy & Market Entry Cases
Tesla's Entry into Indian EV Market
00:00
Case Opening & Structuring
Understand the context and develop your approach
Senior Partner
Good morning. I'm glad you could join us today. Our client is Tesla, the leading electric vehicle manufacturer. They're considering entering the Indian market and have asked us to evaluate this opportunity.
Before we dive in, let me share some context about their current situation and the Indian market dynamics.
Before we dive in, let me share some context about their current situation and the Indian market dynamics.
Tesla Global Performance (2023)
| Metric | Value | YoY Growth |
|---|---|---|
| Global Revenue | $96.8 billion | +19% |
| Vehicle Deliveries | 1.81 million | +35% |
| Gross Margin | 23.1% | -3.4pp |
| Operating Cash Flow | $13.3 billion | +28% |
Indian EV Market Overview
| Parameter | Current (2024) | Projected (2030) |
|---|---|---|
| Market Size | $2.3 billion | $15.4 billion |
| EV Penetration | 1.3% | 8.5% |
| Avg. Car Price | $12,000 | $15,000 |
| Import Duty (CBU) | 100% | TBD |
How would you structure your approach to this problem?
Information Gathering
Ask clarifying questions to understand the situation better
Senior Partner
Good framework. Now, what key information would you need to analyze this opportunity effectively? You can ask up to 3 questions.
Questions Remaining
3
What is the competitive landscape and market share distribution in India?
What are the regulatory requirements and government incentives for EVs?
What is the current state of EV charging infrastructure in India?
What are Indian consumer preferences and buying behaviors for EVs?
What are the local manufacturing requirements and potential partnerships?
Quantitative Analysis
Analyze the data and perform calculations
Senior Partner
Let's dive into the numbers. Based on the data provided, I'd like you to calculate the potential market opportunity for Tesla in India.
Market Sizing Data
| Segment | Annual Sales (Units) | Avg. Price | Tesla Target Share |
|---|---|---|---|
| Premium EVs (>$35k) | 12,000 | $45,000 | 25% |
| Mid-Premium EVs ($20-35k) | 38,000 | $28,000 | 15% |
| Mass Market EVs (<$20k) | 95,000 | $15,000 | 5% |
Your Calculations
Hint
Remember: Revenue = Units × Market Share × Average Price. Don't forget to convert to millions!
Qualitative Insights
Synthesize findings and identify key insights
Senior Partner
Good quantitative work. Now, let's think about the strategic implications. What are the key insights from your analysis?
Key Strategic Considerations
- • Price Gap: Tesla Model 3 ($40,000) vs. Average Indian car ($12,000)
- • Infrastructure: Only 2,800 public charging points nationwide
- • Competition: Tata (45% share), Mahindra (23% share) dominate
- • Import Duties: 100% on completely built units (CBUs)
- • Growth Rate: EV market growing at 45% CAGR
Identify and prioritize the key challenges Tesla would face:
Final Recommendation
Present your recommendation to the client
Senior Partner
Excellent analysis. The CEO of Tesla is about to join us. You have 60 seconds to present your recommendation. Be concise and data-driven.
Time Remaining
60s
Structure your recommendation:
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Information Gathering
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Quantitative Analysis
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Qualitative Insights
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Final Recommendation
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