Tesla Motors is transforming the way that people have always thought of vehicles. The was company started in 2003 by a group of engineers is fast-tracking the world’s evolution to sustainable energy. People don’t need to compromise on any other front to drive electric vehicles was proved by Tesla. Electric vehicles could give the user a better driving experience, and quicker and more fun to drive than gasoline cars. The best-selling battery electric passenger car manufacturer for cars sold in 2019 has emerged to be the global king of battery capacity.
Elon Musk, the chief executive officer of Tesla, a global icon of the modern era. He has remodelled transportation on Earth and in space. Elon Musk, with his path-breaking ventures like PayPal, SpaceX and The Boring Company in three completely different industries is an example of incredible entrepreneur and visionary. Since a long time, Musk had a strong plan to achieve his lofty business goals set out for Tesla. His goal was not to experiment with a one-time electric sports car when the first sports car Roadster in 2008 was launched. Instead, his goal was to build an enormous market of cars with Electric battery technology. Musk has had an obvious vision and a long-standing term goal, before its first vehicle rolled off the production line. At Tesla noting happens by chance, the idea was backed by Tesla’s stringent focus on technology. It has always been about just technology for Elon Musk. While viewers smirked at his vision, unwavering Musk focused on building cars with a battery of lithium-ion technology right from the beginning. In the end, having a great likeminded team and consummate engineers, he delivered cars to the world that were faster, rapid, remarkable, sustainable, stylish and smart than the contemporaries.
For Tesla Motors, strong technology is everything. Musk, an engineer himself, concentrated right from the beginning on an absolute reliable technology product. The technology is an obsession. Tesla’s technology is so promising that other car companies rely on it. Even his critics would acknowledge the company is so far forward in the competition when it comes to research and development, technology, creation, and innovation that it’s hard to even speak about them in the same league.
Peter Thiel, an early investor mentioned about Tesla Technology in his book Zero to One, “Tesla’s technology is so promising that other car companies rely on it: Daimler uses Tesla’s packs of batteries; Tesla powertrain is used by Mercedes Benz; Tesla motor is used by Toyota. General Motors has also established a task force to track Tesla’s next moves.”
Tesla knew right from the beginning; the most significant part of getting EV right would be through the battery. It could be the disparity between success and failure. Tesla built its factory of battery in Nevada and is called the Giga factory with a capacity to produce 500,000 cars in 2020, collaborating with the promising in business. Further, Tesla took its distribution, service and maintenance on itself and did not even appoint a dealer. Onset in 2012, Tesla built charging stations for electric vehicles called Superchargers for charging cars instantly. These are Tesla Stations.
Tesla has been enormously successful in USA stock markets with its market cap touching $140 billion, which is a lot more than that of GM, Ford, Chrysler combined. This is tremendous for a company that is yet to break even. Tesla is an incredible success in a market when ascertained much bigger players like GM, Ford, Nissan failed in EV.
India’s Suggested Business Model For formulating Electric Vehicles
The Indian automobile market is at its intersections. The demanding environment standards are giving rise to the OEMs invest continuously in their IC engine vehicles. In a high price-sensitive market, it is consuming its profitability. The Indian government is extremely serious about rigorous emission control and has rolled out a time-bound strategy to shift to electric vehicles. The government expects to have 100 per cent electric two-wheelers and three-wheelers by 2025. For a global number 4 ranked auto industry on annual car production, with extremely low electric vehicle penetration presently, it is very enterprising.
In the current Indian market outline, there are a ton of new players entering the Electric Vehicle segment. Most of these are in three-wheelers and some in two-wheelers manufacturing space. Numerous of these entrants have taken the opportunistic route to create a sudden economic success by simply importing the kits from China and selling in India. These compete for the three-wheeler segment’s low end and dominate the e-rickshaw category. These segments of vehicles are today crowded by these early movers relying entirely on inexpensive imports from China. There is an enormous opportunity for serious Indian players to get into manufacturing Electric vehicles with indigenous design and development. A well-focused Research and Development based vehicle would be a serious contender for long-run achievement.
Indian companies should acquire a Tesla model in their business with a precise focus on the following business goals:
- Invest in the high end of technology supported by a committed team of engineers led by experienced and skilled industry professionals.
- Adopt “Make In India” right from the start and get the supply chain right. with local targeting right from the start. 100 per cent of local quantity and zero imports. Function with local battery and powertrain supplier partners.
- Don’t just sell the vehicle; provide an end to end solution to the customer, which will include the vehicle as a service as well. Deliver an accurate mobility solution, not just a vehicle. Acquire the hardware-as-a-service model.
The three-wheeler producers need to build reliable and durable vehicles that would shape the way the market looks at the three-wheelers today. Market image of shabby looking, inadequately designed, low end, ragtag three-wheeler needs to shift, with its growing 1 million-plus segment of annual vehicle production. Recent OEMs need to function with design houses, investing in trendy & stylish designs in the metal body. Looking on the performance side, the producers need to ensure battery performance as well and that too with an exceptionally effective thermal management system and an extremely efficient drive train. Also, safety is a significant part of Electric Vehicle. This will bring about the difference between an ordinary and a world-class product.
In the post-COVID-19 world phase, the environment has been the only gainer with nature rebooting itself. It will transform the way we live in our society with health and safety, bringing a higher priority over others. Hence it is exceptionally critical to get the battery vehicle product right. This is where the priority on quality, reliability, dependability and technology appears. A supply chain with liable supplier partners for these integral parts like Li-Ion batteries needs to be set up. India must figure out supply lines of significant materials and get its mega battery manufacturing promptly. The selection of battery technology needs to be done carefully and safety protocol needs to be ascertained. India requires to tie up with foreign countries for the supply of lithium, cobalt, copper and other minerals and materials for a magnitude scale energy security. On the demand side, the prosperous companies will build a pan India network for empowering mobility as a service solution. Vehicle producers must look for export markets right now. Affiliations should be set up in regions like ASEAN, Africa and Latin America where there is bound to be a vast demand for these vehicles.
Every electric vehicle manufacturer in India with the above manufacturing concept should aim to be a high-end manufacturer of Electric Vehicles.
To have the Tesla, two- and three-wheelers should be our perception for the Electric Vehicle.