MG Motor India views Tesla's entry into India's EV market as a positive development for the country.

• Rajeev Chaba, CEO Emeritus of MG Motor India, believes that the Indian electric vehicle market needs more competition, and the entry of companies like Tesla could help balance the field.
• "As India gains market attention, more players and investments will enter the market, and Tesla will contribute to developing the ecosystem, attracting some consumers," Chaba stated to CNBC.
• This week, Elon Musk, CEO of Tesla, postponed a planned trip to India to meet with Prime Minister Narendra Modi due to heavy Tesla responsibilities.

Rajeev Chaba, CEO Emeritus of MG Motor India, stated that India's electric vehicle industry still lacks competition, but the entry of international automakers like will even the playing field.

At present, competition is limited due to the fact that consumers lack compelling choices, as stated by Chaba to CNBC's Sri Jegarajah in Gurugram, India.

India's automobile sector comprises roughly 5% electric vehicles, according to Bain & Company.

The Indian government's objective of achieving 30% EV sales by 2030 seems challenging at present, according to Chaba. However, he believes that any percentage between 20% to 30% may be achievable if the government implements more policies to attract foreign automakers.

As India gains market attention, more players and investments will enter the market, and Tesla will contribute to developing the ecosystem, attracting some consumers.

The Indian government has reduced import tariffs on certain EVs to 15% if carmakers meet certain requirements. Prior to this, foreign EVs were subject to an import tax of 70% or 100%, according to Reuters.

Under India's new policy, automakers who invest at least $500 million and establish manufacturing facilities in India within three years will be allowed to import up to 8,000 electric vehicles (EVs) that cost $35,000 or more per year at a lower tax rate.

Tesla's efforts to enter the Indian market have been aided by the move to lower import duties, which the company has been advocating for.

Before, concerns were reportedly expressed by domestic carmakers such as Tata Motors, Mahindra and Mahindra, and Maruti Suzuki.

Chaba stated, "More players coming with more options will allow customers to explore various choices and make informed decisions. Collectively, we will educate customers and dispel any misconceptions."

"Tesla's arrival is highly beneficial for the industry, the country, and serious players like us."

Elon Musk, CEO of Tesla, has stated that he is "extremely enthusiastic about India's future," asserting that it holds "greater potential than any major nation globally."

Tesla may not prioritize investments in the South Asian country at the moment.

This week, Musk was scheduled to travel to India to meet with Prime Minister Modi, but he postponed the trip due to heavy Tesla responsibilities.

Reports indicated that Musk planned to invest between $2 billion and $3 billion in India to construct a new factory, while Tesla has already begun searching for showroom space in New Delhi and Mumbai, according to Reuters.

On Tuesday, the EV automaker reported a 9% loss in first-quarter revenue, which is the largest drop since 2012. However, shares surged more than 11% after Musk announced that production of new, cheaper EV models could begin by early next year.

The company recently reduced prices in major markets, including the U.S., China, and Germany, due to declining sales and increased competition from Chinese electric vehicles.

Chaba pointed out that the demand for EVs in India may remain low due to a lack of confidence to switch to them, which is hindered by insufficient charging infrastructure.

"We still have a long way to go in terms of infrastructure, it may take 20 years for us to reach there," he warned. "Our electric vehicles have a good range, but customers are still very, very happy."