Tesla in India for Rupees 20 Lakh? The Reality Behind the Hype!

Tesla's much-anticipated entry into India might be finally happening! With some reports of a potential import duty reduction from 115% to 15-20%, Tesla could become more affordable for Indian buyers. But will it be truly within reach for the average consumer? Anushka Rathod breaks down the numbers and the impact on India's EV market.

Lower Import Duties: A Game Changer?

Currently, imported EVs in India are facing a hefty 115% import duty, making them significantly expensive. However, after a key meeting between Elon Musk and PM Modi, reports suggest that duties could be possibly reduced to 15-20%. But there's a catch—Tesla will need to invest at least $500 million in a local manufacturing.

How Much Will a Tesla Cost in India?

The cheapest Tesla in the US costs around ₹30 lakh. Even with the reduced import duties and road taxes, the on-road price in India could be around ₹35-40 lakh. While this is more affordable than before, it's still 25-50% higher than the existing EVs like the Mahindra XUV90, Hyundai e-Creta, and Maruti Suzuki e-Vitara.

Impact on the Indian EV Market-

Despite the price gap, Tesla's entry could possibly disrupt the Indian automobile sector, especially if the local manufacturing lowers costs further. However, experts believe that the market may have overreacted to this news, and only time can tell how Tesla performs in India. 

While some reduced import duties could make Tesla much more accessible, its expected price of ₹35-40 lakh still keeps it in the premium segment. However, if Tesla invests in the local manufacturing, costs could drop even further, making it a real game-changer. Whether this move reshapes India's EV market or remains a niche luxury, remains to be seen. Would you consider buying a Tesla at this price?

So, what do you think? Will Tesla change the Indian EV landscape, or will the pricing remain a hurdle? Would you buy one?

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