Bishesh Rayamajhi

24/02/2023
Erik Schmit
Tesla
Intercollege Business school

Portfolio: International Business

Tesla to India
Table of Contents
1. Management Summary...........................................................................................................................2
2. Situation Analyses...................................................................................................................................2
3.External Analysis.......................................................................................................................................4
A. Culture and Societies...........................................................................................................................4
B. Economic Development......................................................................................................................7
C. Political Environment..........................................................................................................................9
D. Legal Environment:...........................................................................................................................11
E. Global Financial Environment............................................................................................................12
F. Technological Environment...............................................................................................................14
G. Ecological Environment.....................................................................................................................15
4A. Summary of External Analysis.............................................................................................................17
4B. Recommendation................................................................................................................................17
References.................................................................................................................................................18
1. Management Summary
Tesla is an American electric vehicle (EV) and clean energy company founded in 2003. The
company produces electric cars, battery energy storage systems, and solar products. Tesla's
cars are known for their long-range capabilities, advanced features, and high performance. The
company has a strong focus on sustainability and clean energy, and aims to accelerate the
transition to sustainable energy by providing innovative products and solutions.

Opportunities: Certainly, Tesla has the potential to significantly grow its business by entering
the Indian market. This is largely due to the country's massive population, growing middle class,
and increased purchasing power. Furthermore, the Indian government's emphasis on renewable
energy and provision of electric vehicle subsidies strengthens Tesla's prospects. In addition, the
country's youthful and technologically proficient population, prime position as a manufacturing
hub, and ability to establish local partnerships present a strong foundation for Tesla to develop
a meaningful presence in the Indian market. Furthermore, the increasing preference for high-end
vehicles among Indian consumers, along with the government's Make in India initiative, create a
conducive climate for Tesla to establish local manufacturing operations and expand its global
footprint. By capitalizing on these favourable factors, Tesla can play a key role in promoting the
uptake of electric vehicles and clean energy solutions in India, while also consolidating its
position as a dominant player in the global electric vehicle industry.

Threats: Tesla's potential entry into the Indian market also faces significant challenges and
threats that must be navigated to ensure success. India's complex regulatory system,
bureaucratic inefficiency, and corruption pose significant obstacles to business operations.
Additionally, the country's poorly maintained road infrastructure, limited availability of charging
infrastructure, and price-sensitive market may dampen demand for Tesla's high-end electric
vehicles. High import tariffs and the high cost of production due to supply chain complexities
are additional factors that may increase costs and impact profitability. Furthermore, Tesla faces
fierce competition from existing players in the Indian market.

Recommendations: Based on the opportunities and threats present in the Indian market, Tesla
should consider entering the country, but the company should take a cautious and strategic
approach, investing in extensive market research and building strong partnership with Indian
companies and startups. The company should also consider tailoring its product offerings to
suit the needs of the Indian market and ensure affordable pricing. Furthermore, Tesla should
work with the Indian government to address regulatory issues and to maintain road conditions
and adding more charging stations in different areas. By carefully weighing the opportunities
and threats and taking a strategic approach, Tesla could successfully enter the Indian market
and tap into enormous potential.

2. Situation Analyses
Tesla is an American company founded by Elon Musk, JB Straubel, Martin Eberhard, Marc
Tarpenning, and Ian Wright. The company is named after Serbian-American inventor and
electrical engineer, Nikola Tesla. In 2003 it produced electric vehicles, energy storage systems,

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and solar panels. Their electric cars, including the popular Model S, Model X, Model Y, and
Model 3, offer impressive performance, range, and features like autopilot. In addition, Tesla's
energy storage solutions, such as the Powerwall and Powerpack systems, store renewable
energy for later use. The company's commitment to sustainability and renewable energy has
made it a leader in the clean energy industry, and their innovative products and vision for a
sustainable future have inspired the adoption of electric vehicles and renewable energy
worldwide.

Strengths
 Brand Reputation
 Innovation
 Electric Vehicle Market Leader
 Environmental Benefits

Weaknesses
 Production and Delivery
 High Prices
 Dependence on Government Incentives
 Limited Model Range

Opportunities
 Growing Electric Vehicle Market
 Expansion into New Markets

Threats
 Competition
 Supply Chain Disruption
 Regulatory Changes

Contact Details:
Phone Number: 1-877-798-3752
Email: support@tesla.com
Twitter: https://twitter.com/Tesla
Facebook: https://facebook.com/tesla/
Instagram: https://instagram.com/teslamotors/
Customer and Product Support: https://www.tesla.com/support

Organisational Structure

Tesla has a flat organizational structure which means that there are few hierarchical levels
between employees and management. This structure is designed to promote innovation,
creativity and fast decision-making.
At the top of the organization is the CEO, Elon Musk, who oversees the overall direction and
strategy of the company. Underneath him are several key executives including the Chief
Financial Officer, Chief Technical Officer and Chief Operating Officer. These executives are
responsible for overseeing specific areas of the business, such as finance, engineering and
manufacturing.

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Beneath the executive team tesla is divided into several functional areas, including:

1. Engineering and Development – This department is responsible for designing and

developing new products.
2. Manufacturing – This department is responsible for producing tesla’s products including
vehicle assembly, battery production and solar panel manufacturing.
3. Sales and Marketing – This department is responsible for promoting and selling tesla’s
products to customers around the world.
4. Operations – This department is responsible for managing supply chain, logistics and
customer service operations.
5. Legal and Regulatory Affairs – This department manage legal and regulatory
compliance, intellectual property, contracts and government relations.
6. Human resources – This department is responsible for managing tesla’s employee
recruitment, training and benefits programs.

Product and Services

Tesla delivers electric vehicles, energy storage systems, solar products, a Supercharger
network, home charging, Autopilot and is developing a Full Self-Driving system, all aimed at
accelerating the world's transition to sustainable energy and providing advanced technology to
customers.

Type of Business

Tesla is a production and manufacturing company that designs, produces, and sells electric
vehicles, energy storage systems, and solar products. It also operates retail stores and service
centres to sell and maintain its products. Tesla's growing energy services division provides
solar panel installation, energy storage solutions, and related services to residential and
commercial customers. This unique business model combines production, retail, and energy
services with a focus on sustainable energy and transportation.

Revenue in Last Three Years

Tesla’s revenue has been increasing in last three years, as follows:

 In 2022, Tesla’s revenue was $81.4 billion USD, which was increased by 51% from 2021.
 In 2021, Tesla’s revenue was $53.8 billion USD, which was increased by 70% from 2020.
 In 2020, Tesla’s revenue was $31.5 billion USD, which was increased by 28% from 2019.

Amount of Employee

As of the end of 2022, Tesla had 127,855 employees worldwide. The company is known for its
high standards for employee performance, commitment to innovation and sustainability. Tesla
employs full-time as well as a significant number of contractors and temporary workers. Overall,
Tesla is a dynamic and rapidly growing company with a diverse and dedicated workforce.

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Marketing Mix

1. Product: Tesla’s product includes electric vehicles, energy storage solutions, solar panels
and other products and services that promote sustainable energy. The company’s
electric vehicles include the Model S, Model X, Model 3 and Model Y as well as the
Cybertruck. Tesla also offers energy storage solutions such as the Powerwall and
Powerpack and solar panels.

2. Price: Pricing strategy of tesla is generally higher than its competitors as the company
position itself as a premium brand that offers high quality and innovative products.
However, it also offers lower priced electric vehicles such as Model 3 to appeal to a wide
range of customers.

3. Place: Tesla primarily sells its own retail stores and website, which allows the company
to have more control over the customer experience.

4. Promotion: Tesla’s promotion strategy includes social media marketing, digital

advertising, events and other initiatives that focus on the company’s brand image and
mission. Tesla’s promotion efforts are often centred around the it’s unique features,
such as auto-pilot technology and self-driving capabilities.

5. People: Tesla’s employees play a crucial role in the company’s success and growth and
the company is committed to attracting and retaining top talent. It has a passionate and
dedicated customer base that advocates for the company and its products.

Overall, Tesla’s 5P marketing mix focuses on promoting its unique products, premium
pricing strategy, controlled distribution channels and strong brand image and mission
supported by talented team of employees and a dedicated customer base.

3.External Analysis
A. Culture and Societies

Cultural dimension of India and United State.

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Comparison of Cultural Dimension

India and United State are two different countries with distant cultural dimensions. Some of the
cultural differences are discussed below:

a. Power Distance

The cultural dimension of power distance is very different in India and the United States.
India has a high-power distance culture, where hierarchical structures are respected, and
people are expected to defer to those in positions of authority whereas, the United
States is a low power distance culture, and individuals expect to be treated as equals
and are encouraged to challenge authority. These cultural differences can impact
communication and relationships, and it is crucial to understand these things in cross-
cultural interactions to establish trust and build effective relationships.

b. Individualism

India and the United States have varying levels of individualism in their respective
cultures. In India, the focus is on collectivism and working together as a group, where
the needs of family and community take priority over individual desires. Meanwhile, the
United States promotes individualism and values personal accomplishments and goals.
These cultural differences are important to understand when communicating and
working together in social and business contexts. They influence how individuals
approach teamwork, collaboration, and self-reliance.

c. Masculinity

India and the United States have different levels of masculinity in their cultures. India is
considered a more masculine culture, where traditional gender roles are common, and
there is an emphasis on assertiveness, material success, and achievement. In contrast,

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 the United States is seen as a more feminized culture, where there is a greater focus on
equality, work-life balance, and relationships.

d. Uncertainty Avoidance

India and the United States have different cultural orientations when it comes to dealing
with uncertainty. India tends to prefer clear rules, structure, and order to avoid ambiguity
and risk. On the other hand, the US values innovation, creativity, and adaptability and is
more comfortable with ambiguity and risk. In simpler terms, India is more risk-averse,
while the United States is more open to taking risks.

e. Long Term Orientation

India and the United States differ in terms of cultural orientation with regards to long-
term orientation. India has a long-term orientation, where tradition, social hierarchy, and
long-term planning are valued. Indians have a deep respect for their past and ancestors
and often base their decisions on what has worked before. On the other hand, the United
States has a short-term orientation and places a higher value on immediate results,
quick thinking and fast changes. Americans tend to concentrate more on the present
and future and make decisions based on what is optimal in the present time.

f. Indulgence

In terms of cultural dimension of indulgence, the United States is generally considered to

be a country with high indulgence, while India is considered to be a country with low
indulgence. This means that in the US, people tend to prioritize pleasure, leisure time and
personal enjoyment over self-discipline, restraint, and fulfilling social obligations. In
contrast, Indian culture places a stronger emphasis on social responsibility, self-
discipline, and fulfilling obligations to others rather than one's own personal desires.
However, it is important to note that cultural values and attitudes are not universal, and
there is diversity within both countries in terms of individual attitudes towards
indulgence.

Biggest Difference

One of the biggest differences in cultural dimensions between India and the US is the level of
collectivism versus individualism. India is a highly collectivist society, meaning that people tend
to prioritize the needs and goals of their family, community, and social group over their
individual needs. This is reflected in their emphasis on group harmony, interpersonal
relationships, and respect for authority. On the other hand, the US is a highly individualistic
society, where individual freedom, personal achievement, and self-expression are highly valued.
American culture places a strong emphasis on individual rights, personal responsibility, and
competition, with less emphasis on group identity and social hierarchy.

Another major difference in cultural dimensions between India and the US is the degree
indulgence. When it comes to indulgence, India is considered a society with moderate levels of

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indulgence. People tend to balance their desire for enjoyment and gratification with the need for
restraint and self-control. Religious and cultural values play a significant role in shaping
attitudes towards pleasure and enjoyment. In contrast, the US is a society with high levels of
indulgence. People prioritize their own happiness and pleasure over restraint and self-control.
Personal freedom and autonomy are hig hly valued, and people are encouraged to pursue
their desires and enjoy life to the fullest. This cultural dimension is reflected in the US's high
consumption of goods and services and its focus on individual achievement and success.

In conclusion, India values collectivism and has a low indulgence, emphasizing group harmony
and self-controlled. The US values individualism and has a high indulgence, emphasizing
individual rights and enjoy the life attitude. These cultural differences can impact
communication, decision-making, and leadership in the workplace.

How to Cope with Cultural Differences?

To cope with the cultural differences between India and the US when starting a Tesla business
in India, it is essential to first understand the local culture and values. India is a highly
collectivist society with a moderate level of indulgence, which means that building relationships
and showing respect for authority figures are crucial for successful business interactions.

Understanding the collective nature of Indian society can help in building a strong team with a
shared vision and goals. Tesla can also offer training and development programs that
emphasize teamwork and collaboration and fostering open communication channels to ensure
everyone feels heard and valued.

Tesla can also bring its individualistic values and innovative approach to the Indian market. By
highlighting its unique brand and technological advancements, Tesla can differentiate itself
from local competitors and appeal to consumers who value personal achievement and
innovation.

At the same time, Tesla can take advantage of the opportunities presented by India's cultural
differences. For example, Tesla can leverage the country's moderate level of indulgence to
promote its electric vehicles as a means of satisfying the desire for enjoyment and gratification
while also promoting environmental sustainability. Furthermore, Tesla can tap into India's
collectivist culture by emphasizing the social and environmental benefits of electric vehicles
and positioning itself as a responsible corporate citizen. By taking these steps, Tesla can
successfully enter and thrive in the Indian market while respecting and leveraging the country's
unique cultural values.

In conclusion, Tesla will need to be aware of and adapt to the cultural differences in
collectivism/individualism and indulgence between India and the US in order to successfully
enter and thrive in the Indian market. However, by leveraging these differences to promote its
products and services as socially and environmentally responsible, Tesla can establish itself as
a leader in the Indian market.

B. Economic Development

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GNI: According to the World Bank, in 2022 India’s GNI per capita was $2,537 USD which was
increased by 18.4% from the year 2021 which was $2,150 USD.

GDP: In 2022, GDP of India was $3.469 trillion USD, which was an increase from $2.176 trillion
USD for 2021.

PPP: As of 2021, India’s Purchasing Power Parities (PPP) was $23.138 USD.

Economic Growth: India has experienced significant economic growth over the past few decades
due to economic reforms, but growth was slowed in recent years due to various factors
including COVID-19. Nevertheless, the Indian government is implementing policies to stimulate
growth, and the IMF projects a rebound in GDP growth in 2023-24. Despite economic
challenges, India remains a significant player in the global economy.

Gini Index: India's Gini coefficient was 35.7 in 2022, indicating moderate income inequality.
However, there are significant regional variations within the country, and income inequality
remains a challenge with poverty and social exclusion contributing to the problem.

Unemployment: India has been facing high levels of unemployment for many years, with the
COVID-19 pandemic worsening the situation. The unemployment rate was 9.1% in 2020-21, with
youth unemployment particularly high. The government has implemented various policies and
programs to address the issue, but unemployment remains a significant challenge for the
country.

CPI/Inflation: In 2022, Consumer Price Index (CPI) hit the highest of 7.79% in April. Compared to
inflation in January. 2020, CPI is down 1.09%.

Balance of Payment: India’s current balance of payment recorded a deficit of $36.4 billion in July-
September 2022-23, up from $18.2 billion in the first quarter of the fiscal year.

Taxes: Taxes are of two distinct types, direct and indirect taxes. The difference comes in
the way these taxes are implemented. Some are paid direct, such as the dreaded income
tax, wealth tax, corporate tax etc. while others are indirect taxes, such as the value added
tax, service tax, sales tax, etc.
1. Direct Taxes: Income tax rate for the financial year 2022-23 is listed in the table below:

Income range Income tax rate

Up to Rs. 3,00,000 Nil

Rs. 300,000 to Rs. 6,00,000 5% on income which exceeds Rs 3,00,000 

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 Rs. 6,00,000 to Rs. 900,000 Rs 15,000 + 10% on income more than Rs 6,00,000

Rs. 9,00,000 to Rs. 12,00,000 Rs 45,000 + 15% on income more than Rs 9,00,000

Rs. 12,00,000 to Rs.

Rs 90,000 + 20% on income more than Rs 12,00,000
1500,000

Above Rs. 15,00,000 Rs 150,000 + 30% on income more than Rs 15,00,000

2. Indirect Taxes:
The most common indirect tax in India is the Goods and Services Tax (GST), which is a
value-added tax levied on the supply of goods and services. The GST rates in India vary
depending on the type of goods or services and are classified into four slabs, namely 5%,
12%, 18%, and 28%. Apart from these, there are other taxes such as corporate tax,
capital gains tax, customs duty, excise duty, etc., which are levied on specific goods or
transactions.

But, besides these two conventional taxes, there are also other taxes that have been
brought into effect by the Central Government to serve a particular agenda. ‘Other taxes’ are
levied on both direct and indirect taxes such as the recently introduced Swachh Bharat Cess
tax, Krishi Kalyan Cess tax, and infrastructure Cess tax among others.

Type of Economy: India has a mixed economy that combines elements of capitalism and
socialism. The economy is dominated by a large and diverse private sector, which has grown
significantly due to economic liberalization policies. The government also plays an active role in
promoting economic growth, particularly in areas such as infrastructure and social welfare
programs. However, the economy also has a large informal sector comprising small and
unregistered businesses. Despite challenges such as income inequality and the need for further
reforms, India's mixed economy has shown remarkable growth, making it one of the fastest-
growing major economies in the world.

Opportunity/threat for the market entry: India’s economic development presents both

opportunities and challenges for Tesla’s market entry. The country’s growing middle class and
increasing awareness of climate change have create a favourable environment for electric
vehicle adoption, which could benefit Tesla as a major player in the EV market. Moreover, the
Indian government’s push towards electric mobility various initiatives , such as the Faster
Adoption and Manufacturing of Electric Vehicles (FAME) program, could further boost the
demand for Tesla’s products.

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However, Tesla’s market entry in India also faces challenges such as high import tariffs, which
could increase the cost of its products and limited charging infrastructure in the country.
Additionally, the Indian market is highly competitive with established automakers and domestic
players already present, making it difficult for Tesla to establish a strong market share.

C. Political Environment

Political Ideology: India's political landscape is diverse and includes ideologies such as
nationalism, secularism, socialism, liberalism, and regionalism. Nationalism is a prominent
ideology with the ruling Bharatiya Janata Party (BJP) adhering to it. The Indian National
Congress (INC) is a major opposition party that upholds secularism. The Communist Party of
India (CPI) is a significant socialist party in some Indian states. The Aam Aadmi Party (AAP) is a
new party that espouses liberal values. Finally, regionalism is a common ideology with many
regional parties having significant support in their respective regions.

Opportunity/threat for the Market Entry:

India's political ideology may pose both opportunities and threats for Tesla's entry into the
country's market. The government's emphasis on nationalism and local manufacturing could
work to Tesla's advantage by allowing it to set up a manufacturing plant in India, reducing
production costs, and enabling better competition in the local market. Additionally, India's push
for renewable energy could create demand for Tesla's electric vehicles. However, Tesla may
face challenges when it comes to import tariffs and local sourcing requirements, which could
make importing its vehicles into India more difficult. Furthermore, the emphasis on regionalism
in India could lead to different states having their own regulations, which could create hurdles
for Tesla's entry.

Despite these challenges, Tesla could potentially build strong partnerships with local suppliers
to reduce the risks of tariffs and local sourcing requirements. Tesla's reputation as a leader in
electric vehicles could also work in its favour, helping it to stand out in a market that is
increasingly concerned about the environment. Ultimately, Tesla will need to navigate India's
political and regulatory landscape carefully to establish a strong presence in the country's
market.

Political Risks: India poses significant political risks for businesses due to its bureaucratic
inefficiencies, corruption and lack of transparency. The government's emphasis on
protectionism and nationalism also creates challenges for businesses trying to enter the
market. Additionally, companies may face difficulties with compliance and navigating the legal
system, which can be slow and unpredictable. India's regionalism can further complicate
matters, with different regulations and incentives across states. Despite these challenges, many
businesses still see India as an important market due to its large population and growing
economy.

Strategies to Cope with Political Risks: When entering the Indian market, Tesla must be aware
of the significant political risks that can impact its operations. The country's bureaucratic
inefficiencies, corruption and lack of transparency can create challenges for businesses.
Additionally, the government's emphasis on protectionism and nationalism can be an obstacle
to market entry. To avoid these risks, Tesla must conduct extensive research on the Indian

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market, tailor its products and services to meet local needs, and collaborate with local
businesses, suppliers and distributors to gain local knowledge and expertise, which can help
tesla to navigate the complex bureaucratic process and regulations.

Moreover, Tesla can establish a strong reputation in India by being transparent about its
operations, engaging with local communities, and demonstrating a commitment to corporate
social responsibility. By building trust and credibility with stakeholders, Tesla can establish itself
as a trusted partner in the Indian market. Through these strategies, Tesla can navigate the
political risks of the Indian market and successfully establish its presence in India.

Separation of Powers between Legislative, Executive and Judicial branches: India's

Constitution provides for a separation of powers among the three branches of government: the
Legislature, the Executive, and the Judiciary. The Legislature, which consists of the Rajya Sabha
and the Lok Sabha, is responsible for enacting laws. The Executive branch, led by the Prime
Minister, is responsible for enforcing laws and carrying out the government's policies. The
Judiciary, which includes the Supreme Court, is responsible for interpreting the law and settling
disputes. Each branch has its own distinct functions, but they are designed to work together to
create a system of checks and balances.

How Separation of Power affect Tesla: The separation of powers in India could potentially
impact Tesla's entry into the Indian market. As a foreign company, Tesla will need to comply
with Indian laws and regulations, which can be complex and time-consuming. India's legislative
branch is responsible for creating laws and policies that govern foreign investment, taxation,
and trade, which can impact Tesla's business operations. The executive branch is responsible
for implementing and enforcing these laws and regulations. However, corruption and
bureaucratic inefficiencies can hinder the implementation of policies, which can affect Tesla's
business operations. The judicial branch, on the other hand, has the power to interpret and
uphold the constitution and protect the rights of foreign companies operating in India. In
summary, Tesla will need to navigate India's complex political system and work closely with the
government to ensure compliance with laws and regulations.

D. Legal Environment:

Is India being too International or Regional legislation

According to my research, India has a mix of international and regional legislation, with a focus
on balancing national interests with global obligations. On one hand, India has signed numerous
international agreements and treaties, such as the Paris Agreement on climate change, World
Trade Organization (WTO) and has implemented policies to comply with international
standards.

On the other hand, India has also enacted several regional laws and regulations that prioritize
the domestic businesses and industries, and there have been instances where foreign
companies have faced challenges in navigating the regulatory landscape.

Legal System in India

The legal system of India is a mix of common law, civil law and religious law. The country's legal
system draws heavily from the British legal system due to India's colonial past. However, it also

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has elements of civil law, which is based on legislative statutes and codes. Additionally, the
legal system is also influenced by religious law, particularly Hindu and Muslim law. This results
in a complex and diverse legal system that can be challenging to navigate. The Indian legal
system is made up of a hierarchical system of courts, with the Supreme Court at the top,
followed by the High Courts and lower courts.

Main Legal principles about negligence and product liability in India

In India, the legal principles regarding negligence and product liability are governed by the Indian
Contract Act, 1872 and the Consumer Protection Act, 2019. The concept of negligence is based
on the duty of care owed by a manufacturer or seller to the consumer. A manufacturer is liable
for negligence if the product is defective and the defect causes harm to the consumer. Under
product liability, the manufacturer is responsible for any damages caused by a defective
product, regardless of whether they were negligent or not. The Consumer Protection Act
provides for strict liability, meaning that the manufacturer is responsible for compensating the
consumer for any harm caused by a defective product, regardless of fault or intent. These legal
principles serve to protect consumers and ensure that manufacturers are held accountable for
the safety and quality of their products.

How Tesla can Deal with it

Tesla can implement several strategies to deal with the legal principles related to negligence
and product liability in India. Some strategies include:

1. Ensuring high-quality control measures to prevent defects in their products.

2. Providing clear instructions and warning labels to users about the proper use and
potential risks of their products.
3. Taking liability insurance policies to cover any damages or compensation.
4. Implementing regular safety checks and recalls for defective products to minimize harm
to customers.
5. Keeping up to date with changing legal requirements and standards for products.

Competition Law in India

Competition law in India is regulated by the Competition Commission of India (CCI), which was
established in 2003 under the Competition Act of 2002. The main objective of the competition
law is to promote fair competition and prevent anti-competitive practices in the market.
Here are some examples of lawsuits related to competition law in India that I found during the
research:

1. Uber vs. Ola: Both Uber and Ola, two major ride-sharing services in India, were accused
of violating competition laws by offering massive discounts to customers in order to
gain market share. The Competition Commission of India (CCI) ordered an investigation
into the matter, and both companies were eventually fined for violating anti-competitive
practices.

2. Indian Premier League media rights case: In 2018, the CCI ordered an investigation into
alleged anti-competitive practices in the grant of media rights for the Indian Premier
League (IPL) cricket tournament. The investigation was prompted by a complaint from a
Delhi-based journalist, who alleged that the Board of Control for Cricket in India (BCCI)
was abusing its dominant position to favour certain broadcasters.

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 3. Google: In 2018, the Competition Commission of India (CCI) fined Google around USD
$21 million for abusing its dominant position in the market for online search. The CCI
found that google was imposing unfair conditions on advertisers which hurt competition
in the market.

E. Global Financial Environment

Is India in favour of Free Trade or in Favour of Protectionism

India's trade policy is a complex mix of free trade and protectionist measures. While India has
been a member of the World Trade Organization (WTO) for a long time and has signed multiple
free trade agreements with other countries, including Japan, South Korea, and ASEAN, it has
also implemented some protectionist measures to support domestic industries. For example,
the Indian government has imposed high tariffs on some goods and services, making it difficult
for foreign companies to compete with domestic manufacturers. Additionally, India has several
non-tariff barriers in place that can discourage foreign businesses from entering the Indian
market. However, India's trade policy also aims to strike a balance between the interests of
domestic industries and the benefits of international trade.

Regional, Bilateral and Plurilateral Trade Agreements of India

India has signed several regional, bilateral, and plurilateral trade agreements with other
countries and trading blocs. In addition to the South Asian Free Trade Area (SAFTA) and the Bay
of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation (BIMSTEC), India
has also signed regional agreements like the Comprehensive Economic Cooperation Agreement
(CECA) with Malaysia, the India-ASEAN Free Trade Area, and the India-Korea Comprehensive
Economic Partnership Agreement (CEPA).

India has also signed several bilateral trade agreements with other countries, including Japan,
Singapore, and South Korea. India's most significant bilateral trade agreement is with the United
States, known as the India-US Trade Policy Forum. In addition, India has been engaged in
several plurilateral trade agreements, such as the World Trade Organization (WTO), the Asia-
Pacific Economic Cooperation (APEC) forum, and the BRICS trade cooperation agreement.

Chance or Threat for Tesla

On the one hand, these agreements have helped to reduce barriers to trade and investment,
making it easier for foreign companies like Tesla to enter the Indian market. For example,
India's bilateral trade agreement with the United States provides a framework for resolving
trade-related issues between the two countries and promotes economic cooperation.

On the other hand, these agreements can also pose some challenges for Tesla. For example,
India's trade agreements with other countries may create preferential access for goods and
services from those countries, making it harder for Tesla to compete. Additionally, some
agreements may require Tesla to meet certain regulatory standards or comply with specific
trade rules, which could increase costs and limit the company's flexibility in the Indian market.

Comparison of World Bank Ranking Between US and India

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Why is India’s Ranking being Higher?
India has a higher tax and contribution rate on profits than the US due to several reasons. One is
India's complex tax system with various taxes such as income tax, corporate tax, and goods
and services tax (GST), adding to businesses' overall tax burden. India's corporate tax rate is
also higher than that of the US. The US has a simpler tax system with a federal corporate tax
rate of 21%. India's higher tax rate may fund social welfare programs and infrastructure projects
while the US may aim to promote business growth and investment.

Is this a Chance/Threat for Tesla

The higher total tax and contribution rate on profits in India compared to the US presents both a
chance and a threat for Tesla's market entry. On the one hand, the higher tax burden could be
seen as a threat to Tesla's entry into the Indian market, as it could lead to higher prices and
reduced competitiveness. This could be particularly challenging given that the Indian market is
price-sensitive, and consumers may be less willing to pay a premium for Tesla's products. On
the other hand, the Indian government's push for sustainable energy and infrastructure
development presents a chance for Tesla's market entry. India's focus on electric vehicles and
renewable energy could create demand for Tesla's products, particularly given the company's
reputation as a leader in sustainable energy. Ultimately, the impact of India's tax policies on
Tesla's market entry would depend on a range of factors, including the company's pricing
strategy, product differentiation, and marketing approach.

F. Technological Environment

Is India Innovative than United States?

According to the Global Innovation Index (GII) 2022, India ranks 40 th out of 132 countries,
whereas United States ranks 2 nd which means India is less innovative compared to US. In
general, the United States is widely regarded as one of the world's most innovative countries,
with a robust ecosystem of research and development, world-class universities, thriving startup
culture, and is home to some of the world's most innovative companies, such as Apple, Google,
and Tesla. However, India has also made significant strides in innovation in recent years,

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particularly in areas such as software development, healthcare, and renewable energy. India has
a large and growing pool of highly skilled technical talent, and the government has made
significant investments in research and development to foster innovation.

Number of internet User

India recorded more than 700 million active
internet users as of December 2022, according
to Nielsen’s India Internet Report 2023. Despite
Rural India reaching 425 million registered
internet users, almost 44% higher than urban
areas, which had 295 million active internet
users, the study revealed there is a lot of room
for growth in rural markets, as nearly half of the
rural population is still not actively using the
internet.

As of January 2022, there were 307.2 million internet users in United States of America. The
internet users in US increased 8.4 million between 2021 and 2022.

Education
The education system in India has a strong focus on science and technology, and the country
has produced many renowned scientists, engineers, and technology professionals. India is
home to several prestigious engineering and technology institutions, such as the Indian
Institutes of Technology (IITs) and the Indian Institutes of Information Technology (IIITs), which
have produced some of the world's top technology professionals.

In terms of the percentage of people who have a bachelor's degree or equivalent, according to
World Bank data from 2020, the figure for India was approximately 12%, which is lower than
many developed countries but higher than many developing countries.

Overall, the education system in India is making strides in improving access and quality, and the
country is investing heavily in research and development to drive innovation and technological
advancement.

Gross Domestic Spending on R&D

In recent years, India has shown progress in increasing its research and development (R&D)
expenditure. However, the percentage of the country's GDP invested in R&D is still lower than
other nations. India's R&D expenditure is only 0.7 percent of GDP, which is significantly lower
than the R&D expenditure of the United States which has invested 2.8 percent of its GDP.

Is patent required? Are there companies with patent for Tesla?

To start Tesla in India, a patent may not be required as India follows a first-to-use system rather
than a first-to-file system for trademark registration. However, Tesla would still need to protect
its intellectual property rights to prevent others from using its technology and brand name
without permission. In terms of existing patents for electric vehicles or related technologies in
India, there are several companies that hold patents in this field. For example, Indian automotive
company Mahindra & Mahindra holds several patents related to electric vehicle technology. It is

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important for Tesla to conduct thorough research and due diligence to ensure that its
operations in India do not infringe upon any existing patents or intellectual property rights.

G. Ecological Environment

UN Sustainable Development Goals

The United Nations (UN) Sustainable Development Goals (SDGs) are a set of 17 goals adopted
by the UN General Assembly in 2015 to address global challenges such as poverty, hunger,
inequality, climate change, and environmental degradation. The SDGs aim to create a more
sustainable and equitable world by 2030 by promoting economic growth, social inclusion, and
environmental protection. The SDGs call for a collective effort from governments, businesses,
civil society organizations, and individuals to achieve a better future for all.

SDG 1: No Poverty
India is still struggling with poverty, and there are concerns that Tesla's products are too
expensive for the majority of the population. However, Tesla's entry into the Indian market could
create job opportunities, particularly in the renewable energy sector. This could potentially help
to alleviate poverty in the country, making SDG 1 an opportunity for Tesla.

SDG 2: Zero Hunger

While Tesla's products are not directly related to food production, the company's renewable
energy solutions can help to reduce greenhouse gas emissions and mitigate the effects of
climate change, which could help to protect the agricultural sector in India. In this sense, Tesla's
entry into the Indian market can represent an opportunity to achieve zero hunger.

SDG 3: Good Health and Well-being

Electric vehicles, such as those produced by Tesla, can help to reduce air pollution, which is a
major contributor to health problems in India. Therefore, Tesla's entry into the Indian market can

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be seen as an opportunity to improve public health and contribute to achieving good health and
well-being.

SDG 5: Gender Equality

Gender equality is a significant issue in India, and there are concerns that Tesla's entry into the
Indian market could reinforce gender stereotypes, as the company's products are often
associated with masculinity. However, Tesla can take steps to promote gender equality in its
marketing and employment practices, making SDG 5 an opportunity for the company.

SDG 6: Clean Water and Sanitation

While Tesla's products are not directly related to water and sanitation, the company's renewable
energy solutions can help to reduce greenhouse gas emissions, which contribute to climate
change, which, in turn, has an impact on water resources. Therefore, Tesla's entry into the Indian
market can be seen as an opportunity to contribute to achieving SDG 6.

SDG 7: Affordable and Clean Energy

Tesla's products are aligned with SDG 7, as they produce and promote clean energy solutions.
Therefore, Tesla's entry into the Indian market is an opportunity to promote renewable energy
and contribute to achieving affordable and clean energy.

SDG 8: Decent Work and Economic Growth

Tesla's entry into the Indian market could create job opportunities and stimulate economic
growth in the renewable energy sector. However, concerns have been raised about the
company's treatment of its workers in other countries. Therefore, it is important for Tesla to
ensure decent working conditions for its employees in India, making SDG 8 an opportunity, but
also a challenge for the company.

SDG 9: Industry, Innovation, and Infrastructure

Tesla's innovative products and technologies align with industry, innovation and infrastructure,
as they promote sustainable and innovative infrastructure. Tesla's entry into the Indian market
can help to promote innovation in the renewable energy sector, making SDG 9 an opportunity for
the company.

SDG 10: Reduced inequality

India is struggling with significant inequalities, including income inequality and unequal access
to education and healthcare. Tesla’s entry into India could be an opportunity to help reduce
some of these inequalities, particularly by creating jobs and economic opportunities in areas
that may have been previously neglected. Tesla’s focus on renewable energy could also
contribute to reducing inequalities by providing access to clean energy in rural and
underdeveloped areas.

SDG 11: Sustainable Cities and Communities

India’s urban areas are facing significant challenges related to air pollution, traffic congestion
and inadequate infrastructure. Tesla’s electric vehicles and renewable energy solutions could
help to address some of these challenges by reducing emissions and improving the overall
sustainability of cities. Tesla’s battery storage technology could also play a significant role in
ensuring reliable and sustainable energy supply for urban areas.

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SDG 12: Responsible Consumption and Production
India is currently facing significant challenges related to waste management, including
inadequate waste disposal facilities and high levels of plastic pollution. Tesla’s focus on
sustainability and renewable energy could help to promote responsible consumption and
production practices in India. Tesla’s EVs, solar panels, and battery storage technology could
also contribute to reducing waste and promoting more sustainable production practices.

SDG 13: Climate Action

India is one of the largest emitters of greenhouse gases in the world, and the country is facing
significant challenges related to climate change, including increasing temperatures, more
frequent extreme weather events, and rising sea levels. Tesla’s focus on renewable energy and
electric vehicles could help to reduce India’s greenhouse gas emissions and contribute to global
efforts to address climate change.

SDG 14: Life Below Water

Related population and overfishing coastal areas of India are facing significant challenges.
Tesla’s focus on sustainable energy and renewable technologies could help to reduce pollution
and promote more sustainable fishing practices in India’s coastal communities.

SDG 15: Life on Land

Forests and wildlife in India are facing threats from deforestation, climate change and human
activities. Tesla’s focus on sustainable energy and transportation could help to reduce the
impact of human activities on natural habitats and contribute to preserving the country’s
biodiversity.

SDG 16: Peace, Justice and Strong Institutions

India is facing significant challenges related to corruption and lack of transparency in
government and institutions. Tesla’s entry into India could be an opportunity to promote more
transparency and accountability in government and corporate practices.

SDG 17: Partnerships for the Goals

Tesla’s entry into India could provide an opportunity for partnerships with Indian government
agencies, NGOs, and other organizations to work towards achieving the UN SDGs. Tesla’s focus
on sustainability and renewable energy aligns with India’s commitment to the SDGs, and
collaboration between Tesla and Indian stakeholders could contribute to achieving the goals.

In conclusion, while some of the UN SDGs may pose challenges to Tesla’s entry into India, many
of the goals present significant opportunities for the company to contribute to sustainable
development in the country. Tesla’s focus on renewable energy, sustainable transportation, and
technology aligns with India’s commitment to the SDGs.

4A. Summary of External Analysis

Opportunities Threats
 Big Population  Regulatory system
 Growing middle class with increasing  Competition

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 purchasing power  Poor road conditions
 Government’s push for renewable  High import tariffs
energy  Limited availability of charging
 Young and tech-savvy population infrastructure
 Subsidies from government  Bureaucratic inefficiency
 Potential partnership with Indian  corruption
companies and startups  Price-sensitive market
 Increasing awareness of climate  High cost of production
change
 Strategic location as manufacturing
hub
 Increasing consumer preference for
premium and luxury vehicles
 Government’s focus on Make in India
initiative

4B. Recommendation
According to the research, there are positive signs for Tesla’s entry into the Indian market, but
with that there are both opportunities and challenges across various factors. Cultural and
societal differences need to be taken into consideration, and Tesla must adapt its products and
marketing strategies to cater to Indian consumers. Collaborating with local companies can help
Tesla understand local culture and preferences and improve its brand awareness in India.

Economics development in India is another key factor, and Tesla must offer affordable electric
vehicle (EV) models to cater to price-sensitive Indian consumers. It should also explore
partnership to establish a local supply chain and reduce production costs.

Given the complexity of the political and legal environment in India, Tesla must comply with
local regulations and maintain good relationships with the government. By engaging with
policymakers and contributing to India’s clean energy initiatives, Tesla can build long-term
success in the market.

Tesla must also assess financial risks associated with entering the Indian market and develop a
sustainable business model. It can leverage India’s growing technology infrastructure and
partner with local companies to tap into the Indian talent pool and accelerate innovation.

Finally, aligning its products with India’s sustainability goals can help Tesla build a strong
reputation as a socially responsible and environmentally conscious company. By adopting a
collaborative and customer-centric approach, Tesla can establish itself as a key player in the
Indian EV market.

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References
About tesla: https://en.wikipedia.org/wiki/Tesla,_Inc.
Tesla’s product and services: https://www.tesla.com/en_eu
Cultural dimension: https://www.hofstede-insights.com/
Economy: https://www.rbi.org.in/
Tax: https://www.startupindia.gov.in/content/sih/en/international/go-to-market-guide/
tax-system-india.html
Legal environment: https://blog.ipleaders.in/indian-legal-system-an-overview/
India’s free trade: https://pib.gov.in/Pressreleaseshare.aspx?PRID=1843902
World bank ranking: https://data.worldbank.org/indicator/IC.TAX.TOTL.CP.ZS?
locations=IN-US
Internet user in India: https://www.techloy.com/india-reports-700-million-active-internet-
users-2022/
Internet user in US: https://datareportal.com/reports/digital-2022-united-states-of-
america#:~:text=Internet%20use%20in%20the%20United,at%20the%20start%20of
%202022.

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