At Rs 20 Lakh, Tesla Still A Distant Dream For Indians

NEW DELHI, (IANS) – As reports surfaced on Tesla considering a cheaper Model 3 in India around Rs 20 lakh as it mulls bringing its supply chain ecosystem to the country soon, industry experts on July 13 said achieving this price range appears to be a distant dream.

If all goes well, Tesla can reportedly produce 5 lakh electric vehicles annually that start from Rs 20 lakh, as the Elon Musk-run company plans to set up its auto parts and electronics chain in India, along with seeking incentives and tax benefits.

According to experts, Tesla prices are nearly the same across the globe and currently, the base variant of the Tesla Model 3, which is the cheapest Tesla model available, is priced at $40,240.

Importing this model into India will incur a cost ranging between Rs 60-66 lakh. India imposes a 100 percent import tax on electric vehicles (EVs) priced above $40,000.

Cost reduction could be achieved if Tesla models manufactured in India have fewer features compared to the ones available in the US.

There are initial talks between the Indian government and Tesla and may take some time before a Tesla facility arrives in the country. Tesla is also conducting meetings with industry executives in India, according to The Economic Times. There are also reports that Tesla is working on a ‘next gen’ EV platform that will support compact cars.

The recent challenges in China have provided an impetus for Tesla to potentially explore and establish a manufacturing base in India.