Tesla is set to enter the Indian market, but a CLSA report highlights that even with reduced import duties (15-20%), its most affordable car, the Model 3, will still cost between ₹35-40 lakh—keeping it beyond the reach of most Indian consumers.
Why Tesla’s Pricing Remains High
The Model 3 costs $35,000 (₹30.4 lakh) in the US at the factory level.
After import duty, taxes, and insurance, the on-road price in India could reach ₹40 lakh.
Competing EVs like the Mahindra XEV 9e, Hyundai e-Creta, and Maruti Suzuki e-Vitara cost significantly less.
Can Tesla Impact the Indian EV Market?
The report suggests Tesla won’t significantly disrupt Indian automakers due to India’s low EV penetration.
For Tesla to be price-competitive, it must set up local manufacturing, benefiting from lower duties (15% on 8,000 units annually) if it invests ₹4,150 crore.
A comparison with Harley-Davidson’s X440, which struggles despite a 20% price premium over Royal Enfield, underscores India’s price-sensitive market.
Tesla’s Next Steps in India
Planned launch in major cities like Delhi & Mumbai
Recruitment has begun, signaling a step closer to entry
A local factory is key to long-term success
For Tesla to succeed in India, affordable pricing through local manufacturing will be crucial. Without it, the brand may struggle to compete in India’s cost-conscious market.
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