Lagatar24 Desk
New Delhi: Tesla’s much-anticipated entry into India is creating excitement among electric vehicle (EV) enthusiasts. However, despite potential reductions in import duties, buying a Tesla in India might still remain a luxury.
According to a report by CLSA, even after a reduction in import duty to below 20%, the cheapest Tesla in India is expected to cost ₹35-40 lakh—far higher than most domestic competitors.
Tesla’s Pricing in India
Currently, the most affordable Tesla, Model 3, is priced at $35,000 (approx. ₹30.4 lakh) in the United States at the factory level. With tariffs reduced to 15-20%, along with road tax, insurance, and other costs, the on-road price in India is estimated to be around ₹35-40 lakh, as per CLSA’s analysis.
Tesla vs. Domestic EV Rivals
Tesla is unlikely to disrupt India’s EV market if its Model 3 launches at a higher price than its Indian competitors. Currently, Mahindra, Maruti Suzuki, and Hyundai dominate the segment with more affordable EV options:
• Mahindra XUV 9e – ₹21.90 lakh
• Maruti Suzuki e-Vitara – ₹17-22 lakh
• Hyundai Creta Electric – ₹17.99 lakh
These models are already 15-20% cheaper than the anticipated cost of the Tesla Model 3 in India.
Will Tesla Cut Prices in India?
For Tesla to compete with domestic players, it must set up local manufacturing facilities. Even if import duties are slashed, the costs will remain high unless the company assembles cars in India, reducing logistics and taxation burdens.
Tesla’s India Launch Plans
Tesla is gearing up to launch operations in India, focusing first on Delhi and Mumbai. On February 18, the company officially started hiring in India, listing 13 job openings on LinkedIn, including a Consumer Engagement Managerfor the Mumbai Metropolitan Region.
