Elon Musk’s Tesla is gearing up for its entry in India, but buying a car from the EV maker may not be as easy as you thought even with reduced tariffs.
According to a report by ANI quoting global capital market company CLSA, even the cheapest Tesla models will be far more expensive than its domestic peers.
Even after the reduction in the import duty to below 20 per cent, the cheapest Tesla car cost in India will be around ₹35 to 40 lakh, as per CLSA.
Tesla car price in the US starts from $35,000 (approx. ₹30.4 lakh) at the factory level. Tesla Model 3 is the most inexpensive car of the company in the US.
“The cheapest Model 3 for Tesla in the US is c.USD35k. With tariff lowered to c.15- 20 per cent in India, along with road tax, insurance and other costs, on-road price would be c.USD40k, which is close to Rs3.5-4m,” ANI reported quoting CLSA.
Tesla vs Maruti Suzuki, M&M and others
While the Elon Musk-led electronic vehicle manufacturer has already created a buzz amid reports of its entry in India, Tesla is unlikely to disrupt the domestic EV market if it launches Model 3 at higher costs than its competitors.
Domestic EVs like Mahindra XEV 9e, Hyundai Creta Electric and Maruti Suzuki e-Vitara are already ruling the Indian market and are placed 15-20 per cent lower in terms of cost than the anticipated price of Tesla Model 3.
Mahindra XEV 9e starts at ₹21.90 lakh, while Maruti Suzuki e-Vitara is priced between ₹17-22 lakh. Meanwhile, Hyundai Creta Electric starts at a price of ₹17.99 lakh.
Even if Tesla decides to launch an entry-level model priced below ₹25 lakh on-road and gains market share, the report says that the recent decline in Mahindra & Mahindra’s stock is already factoring in this scenario.
Tesla would need to set up a manufacturing facility in India to make its cars more affordable and scale up its operations, even if import duties are reduced to below 20 per cent, the report says.
Tesla enters India
Tesla in the coming months would be launching its models in Delhi and Mumbai. Tesla Inc. has officially begun its hiring process in India, marking a significant step towards its long-anticipated entry into the domestic market. On 18th February, the electric vehicle (EV) giant posted a job listing on LinkedIn for the position of Consumer Engagement Manager in the Mumbai Metropolitan Region. In total, the company has posted for 13 roles based in India.
