Elon Musk can't be successful in India: Sajjan Jindal

Sajjan Jindal, the chairman and managing director of JSW Group, which owns India’s largest steelmaker, on Thursday said Elon Musk can’t be successful in India as he can’t compete with homegrown carmakers like Mahindra & Mahindra (M&M) and Tata Motors.

“Elon Musk can’t be successful in this country because we Indians are here. He cannot produce what Mahindra can do, what Tata can do,” Jindal said during a chat at the EY Entrepreneur Of The Year Award ceremony.

“He can do under Trump’s shadow in the US. He is super smart. There is no question about it. He is a maverick. He has done amazing stuff with space craft. I don’t want to take anything from him. He is too smart. But to be successful in India is not an easy job,” said Jindal.

Tesla has begun hiring for at least 20 positions in India, including for a store manager role in Mumbai. The world’s largest automaker in terms of market cap is also hiring candidates in Pune. Tesla is hiring for roles such as consumer engagement manager, order operations specialist, customer support specialist, service manager, sales adviser, business operations analyst, service technician, charging developer, software engineer, application product engineer and parts adviser among others.

Jindal’s conglomerate sells cars under the JSW MG Motor India brand in which JSW owns 35% stake in a joint venture with China’s state-owned SAIC Motor. JSW MG motor India is the second-largest electric carmaker in India after Tata Motors. Its MG Windsor has become the country’s top-selling EV over the past few months.

Making cars was steel magnate Jindal’s childhood dream. With MG Motor India, Jindal said he is looking to script history with another ‘Maruti moment’. “When Maruti came to India 40 years ago it changed the industry. It brought in efficient, lightweight cars and the Ambassadors and Fiats went into oblivion,” said the JSW Group chairman.

Meanwhile, Tesla has yet to apply for the government’s Scheme to Promote Manufacturing of Electric Passenger Cars in India (SPMEPCI) which slashes import duty to 15% from 100% for EVs with cost, insurance and freight value of $35,000 or more. Critics of the scheme had argued that it was tailor-made for Tesla, which has yet to commit any investment under the scheme.

Under the new policy, automakers are required to invest at least ₹4,150 crore or $500 million to set up a new EV manufacturing facility in India within three years. A localisation of 25% is to be achieved by the third year and 50% by the fifth year. The duty foregone on the total number of EVs allowed for import would be limited to the investment made or ₹6,484 crore (equal to incentive under the PLI scheme). A maximum of 40,000 EVs at the rate of not more than 8,000 per year would be permissible if the investment is $800 million or more.