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Elon Musk, Anand Mahindra respond to how car companies make money – Times of India

Tesla CEO Elon Musk Recently talked about how big car companies work and make money. In response to a tweet, Musk said that building a car is a tough nut to break. Musk said that, “Production is tough. Production with positive cash flow is extremely difficult.” He goes on to explain how car companies make money, “Large existing carmakers sell their cars at less than zero actual margin. Most of their profit is selling replacement parts in their fleets, of which 70% to 80% are past warranties. Huh.”
Musk’s tweet received a response Anand Mahindra, president of Mahindra and Mahindra. The Indian industrialist replied to Musk that what he was saying is what Mahindra has been doing for years. “And we’ve been doing this for decades. Still sweating and getting away with it. It’s our way of living…”

In his tweet about how car companies make money, Musk further explained that the situation is “like razors and blades. New car companies lack this advantage. Sales and service infrastructure is also lacking.”
Clearly, Mahindra agrees with Musk’s succinct explanation of the challenges facing car companies – be it in India, Europe, the US or any other part of the world.
Meanwhile another Indian company- Tata Motors Making noise about Tesla’s entry in India. Musk recently said that although Tesla really wanted to drive in the Indian market, there were several issues. The biggest was the import duty that would make Tesla cars overly expensive and was a deterrent for Musk to launch in India. There were reports of the Indian government considering reducing that fee. However, Tata Motors is against the idea as it is building up. Apish for car parts made in India.
Tesla’s entry into India has been in the news for many years, but it is still not clear if and when Elon Musk drives his electric car in the country.


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