Tesla Is Revving Up for its Entry into the Indian Market

Tesla Is Revving Up for its Entry into the Indian Market

 

Elon Musk has been teasing Tesla’s fans in India with an imminent market entry.

Tesla’s CEO has targeted the Indian market for a few years. Currently, there are several conditions favorable to making the electric vehicles (EV) in India. Initially, Musk might consider exporting vehicles from its manufacturing base in neighboring China to satisfy demand in India. Irrespective of the location, the car company will have to reduce its costs significantly in order to be a viable contender in India’s EV market.

 

 


Video Spotlight: Will Tesla Build a Gigafactory in India?


This post is based on the CNBC article, Why Tesla’s 20-Million Electric Vehicle Goal Could Next Take Elon Musk to India, by V. Barhat, October 22, 2020, and the YouTube video, Will Tesla Build a Gigafactory in India?, by Cleanerwatt, October 6, 2020. Image source: Shutterstock / Luciano Mortula.

Discussion Questions:

1. What are the opportunities for Tesla’s entry into the Indian market?

Guidance: There are many opportunities that make Tesla’s entry into the Indian market an attractive proposition. The potential market size and labor pool are huge, and the fan base is expanding. Battery prices are falling, making it easier Continue reading

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Amazon’s Thousand Suburban Warehouses

Amazon’s Thousand Suburban Warehouses

November 3, 2020

Amazon plans to open 1,000 small delivery hubs across the United States, with plans to increase this number to approximately 1,500.

The move is to further the company’s goal of same day delivery to customers.  Walmart and Target have been using their network of stores to provide same day delivery, with Walmart implementing Walmart+, its own version of Amazon Prime.

Amazon’s small delivery hubs are planned to be about 200,000 square feet, one-quarter the size of the company’s fulfillment centers.  Moreover, these suburban hubs will provide parking lot space for hub workers, Amazon delivery vans, and the gig workers who make Amazon deliveries.

Overall, it is expected that each small delivery hub will generate around 1,000 vehicle trips per day.


Video Spotlight: 


This post is based on the Yahoo Finance article, Amazon Plans to Put 1,000 Warehouses in Suburban Neighborhoods, by Spencer Soper, September 16, 2020, and the YouTube video in the Spotlight. Image source: jeremyiswild/Getty Images

Discussion Questions:

1. What advantage does the small delivery hub offer?

Guidance: These small hubs allow inventory to be Continue reading

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Harley-Davidson Motors Out of India

Harley-Davidson Motors Out of India

October 15, 2020

Harley-Davidson has ceased manufacturing operations in India, succumbing to low-cost rivals, high taxes and declining discretionary spending.

With an average sale of 3,000 units a year, Harley-Davidson failed to gain a foothold in the Indian market of 21 million motorcycles and scooters.


Video Spotlight: 


This post is based on the BBC article, Harley-Davidson to exit world’s biggest bike market, by Nikhil Inamdar, September 25, 2020, and the YouTube video in the Spotlight. Image source: ChameleonsEye/Shutterstock

Discussion Questions:

1. What factors contributed to Harley-Davidson’s decision to enter the Indian market a decade ago?

Guidance: The entry factors include (1) India is considered the world’s most lucrative market with an annual demand of 17 million motorcycles and scooters; (2) Harley wants to grow the brand beyond its local U.S. customer base; and (3) a trade agreement.

2. What factors contributed to Harley-Davidson’s decision to exit the Indian market in 2020?

Guidance: The exit factors include (1) demand is too low to derive cost efficiency; (2) high taxes and import tariffs; (3) a slowdown of discretionary spending; and (4) an inability to compete with Indian brands.

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