Adapt And Compete: Hero Enterprise's Sunil Munjal To Indian Carmakers As Tesla Eyes Entry

Hero Enterprise Ltd. Chairman Sunil Kant Munjal has three words of advice for domestic automakers as they prepare to share Indian roads with Tesla cars: adapt and compete.

"Tesla serves as an example of how high-performing vehicles can also be clean vehicles. More players are expected to enter the market to contribute to building the backbone of clean mobility," the auto industry veteran told NDTV Profit on Friday.

While Tesla may pose some competition, it does not appear as a direct threat to domestic carmakers, according to Munjal. He noted that potential cuts in tariffs on imported cars will apply to all manufacturers and not just the Elon Musk-owned company.

"Domestic carmakers will need to adapt to the changing market dynamics and consumer demands," he said.

Auto sector analysts have highlighted the price advantage Indian carmakers have over imported Tesla EVs, even if the upper premium segment may witness stiffer competition.

Despite such commentary, shares of top Indian manufacturers like Mahindra & Mahindra Ltd. and Tata Motors Ltd., who have the lion's share in the EV market, have been whipped since mid-February after Prime Minister Narendra Modi met with Elon Musk.