Tesla led by Elon Musk is getting ready to venture into the Indian market, nevertheless, the cheapest EV it will be offering will still be expensive. As of now, even after cutting down on import duties to 15-20 per cent, the cost of the least expensive car by Tesla is expected to start from ₹35-40 lakh, a report by global capital market firm CLSA says. The Model 3 in the U.S. starts at $35,000 (₹30.4 lakh) factory direct, but once you factor in Indian road taxes, insurance and other costs, the final price is substantially higher.
The report also points out that Tesla’s cheapest EV will cost 20-50 per cent more than some of the domestic electric cars including Mahindra XEV 9e, Hyundai e-Creta and Maruti Suzuki e-Vitara, which means it is unlikely to disrupt the EV market in India. CLSA also commented that the effect on the major Indian automakers will be limited due to the relatively low level of EV sales in the Indian market compared to countries like China, Europe, and the U.S. Currently, Tesla sells its vehicles in India through import, but plans to start selling in Delhi and Mumbai soon, and is already recruiting staff. But to make its cheapest EV more accessible, Tesla must set up a local manufacturing facility. This is because, under India’s EV policy, Tesla can get lower import duties on up to 8,000 units each year if it invests more than ₹4,150 crore in a domestic factory.
