Tesla Model 3 price in India: Tesla India

Tesla has entered India and registered an R and D center in Bengaluru as Tesla India Motors and Energy Pvt. Ltd. There are a lot of discussions and predictions about how the company will perform in Indian market.

Elon Musk in 2019 showed his concern on entering India. He said” I’m told import duties are extremely high (up to 100%), even for electric cars. This would make our cars unaffordable”. This will increase tesla car price in India significantly. India’s effort to increase EVs in the market is falling short in front of China (Tesla cars will be shipped from China to India) or any other countries.

Another problem that Tesla will face in India is the subsidies. The Maximum limit for an EV to be eligible for subsidy in India is Rs 15 Lakh. Tesla’s expensive cars will not qualify for EV subsidies. Even the top variant of Indian made Tata nexon EV will not be eligible for the subsidies.

The Indian Government had 25% import tax on CBU (completely built up) electric vehicles. Given the rise of Chinese products in India, Finance minister Nirmala Sitharaman proposed a hike on basic custom duty on CBU electric vehicles to 40% from the existing 25%.

Tesla is likely to launch their least expensive car, the Model 3. Even the Base variant of the Model 3 will cost 2,65,740 yuan or nearly $41,000 in China. Tesla Model 3 price in India will be ₹40Lakh after paying all the taxes and customs duty. The most trending segment in India is the compact SUV and the Tesla compact SUV the Model Y will cost $52000 in China. Tesla cars will be imported in a CBU state from China. In addition to the Custom Duty, buyers have to pay the road tax by the state.

Tesla car price in India upon arrival after paying the import duty and taxes will put it beyond the reach of most customers. 75% of all the cars sold in India are below ₹10 Lakh but even the least cost Tesla Model 3 price in India will be over ₹ 40 Lakh . It is highly unlikely that Tesla will find a local supplier for any of its parts to reduce the Tax amount.

Looking at the price, even the least expensive Tesla will cost well over ₹40 Lakhs that will put it under the luxury vehicle segment. The Luxury vehicle segment market share has come down to 0.9 % from 1.2%.

While the long range models of Tesla cars are unaffordable. A buyer who drives it around the city and attempts to save money would rather look into indigenous vehicles such as Tata Nexon. Electric vehicles take up less than 1% of the market and an expensive electric vehicle that costs as much as a luxury vehicle, Tesla will have a tough time selling.
Also check out: Tesla battery technology

Tesla might have a slow start in India for sure. It needs time to establish charging infrastructures all over India. Ammar Master, a forecaster at consultancy LMC Automotive, said he expects Tesla to annually sell only 50-100 of its Model 3 electric sedans in India, at least in the first five years. Unlike other brands, Tesla is committed to only electric vehicle manufacturing, they can focus on their EV future in India without any other distractions. Tesla might localize their products in the near future once the market is ready.

	Pirce in China( USD)	Custom Duty	Expected price in India(Ex-showroom)(₹)
Model 3	41,000	40%	40,00,000
Model Y	52,000	40%	52,41,000
Model S	1,14,000	40%	1,14,91,000

Tesla Model 3 price in India: Tesla India

Challenges

Subsidies

Custom duty

Price prediction of Tesla

Sales: Price is an issue

Sales: It comes under luxury vehicles

Sales: It’s still an electric vehicle

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