Tesla Model 3 to Cost ₹35-40 Lakh in India Even with Lower Import Duties, Says CLSA Report
Tesla is gearing up to enter the Indian market with its Model 3, which is expected to be priced between ₹35-40 lakh, even with reduced import duties. According to a report from global capital firm CLSA, the lowered import taxes are unlikely to significantly decrease the price due to additional costs like road tax and insurance. Despite the premium price tag, Tesla aims to make a strong impact in India’s growing electric vehicle market.
Cost Breakdown of Tesla’s Model 3 in India
The Model 3 from Tesla carries a purchasing cost of $35,000 in the United States markets. Callaway Sports Supply’s Model 3 will carry a ₹35-40 lakh on-road price despite lower import taxes of 15-20 % since customers must pay road tax and insurance costs. Most Indian buyers would consider the car to be a major investment which establishes it as an elite EV during the development phase of India’s electric vehicle infrastructure.
According to the report Tesla seems to have chosen a pricing approach above what domestic EVs such as the Mahindra XEV 9e and Hyundai e-Creta command. A lower product cost of these models could restrict Tesla from achieving meaningful market penetration during its Indian debut. Despite expensive car prices, Tesla could potentially succeed in India because the company maintains a well-known international brand along with strong market demand for electric cars.
The Competitive EV Market in India
India holds a lower percentage of electric vehicle penetration than countries across the world including China Europe and the United States. Data from CLSA suggests Tesla will not create major disruption to Indian manufacturers Mahindra and Tata Motors throughout the near future. Many international competitors entering the EV market might benefit its growth yet Indian consumers continue to show slow EV adoption.
The main competition Tesla faces in India stems from automotive businesses that provide cheaper electric vehicles. The Mahindra XEV 9e alongside the Maruti Suzuki e-Vitara represents the preferred option for Indian consumers attempting to purchase entry-level electric vehicles. The entrance of Tesla to this marketplace will pose challenges to Indian automobile businesses yet will not trigger an immediate transformation within EV sales because Indian consumers tend to be price-sensitive.
Tesla’s Plans for India and Manufacturing Facility
The hiring activities Tesla performs in India demonstrate that its vehicle launches for Delhi and Mumbai cities are approaching rapidly. A Consumer Engagement Manager position recently appeared in the Mumbai region through company recruitment efforts while demonstrating the development of Indian business operations. The report suggests that Tesla needs to build an Indian manufacturing facility to make its vehicles affordable after India reduced import duties.
