Tesla has officially started recruitment in India, signaling its entry into the market. The Tesla Model 3 is expected to cost ₹35-40 lakh despite import duty cuts. Learn about Tesla’s plans, including showrooms in Delhi and Mumbai, and its impact on the Indian EV market.
Tesla Model 3
Elon Musk’s Tesla has officially started the process of posting recruitment ads in India, marking a significant step towards its official entry into the country. The development comes almost immediately after Prime Minister Narendra Modi met Tesla CEO Elon Musk during Tesla’s recent visit to the US.
As the Elon Musk-led Tesla is planning to enter India soon, even after the import duty is reduced below 20 percent, the current cheapest car from the OEM, the Tesla Model 3, will cost at least ₹35 lakh in the country, a report has claimed.
According to a report by global capital markets firm CLSA, even after the duty is reduced below 20 percent, the Tesla Model 3 will cost around ₹35 lakh to ₹40 lakh.
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The report highlighted that currently, Tesla’s cheapest Model 3 in the US is priced at around USD 35,000 ex-factory (which is around Rs 30.4 lakh). With the expected reduction in import duty in India to 15-20 percent, including additional costs like road tax and insurance, the on-road price of Tesla Model 3 in India will still be around ₹35-40 lakh.
The report also claims that if Tesla Model 3 is priced 20-50 percent higher than domestic EV models like Mahindra XEV 9e, Hyundai Creta Electric, and Maruti Suzuki e-Vitara, it is unlikely to significantly disrupt the Indian EV market, the report claims.
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However, the report suggests that Tesla’s entry will not have a significant impact on major Indian automakers, as the overall penetration of EVs in India is lower than in China, Europe, and the US.
Even if Tesla decides to launch an entry-level model under Rs 25 lakh and gain market share, the report believes that the recent fall in Mahindra & Mahindra’s stock is already factoring in this scenario.
Tesla aims to open showrooms in Delhi and Mumbai
Next month, Tesla will launch its models in Delhi and Mumbai. Tesla has officially started its recruitment process in India. The EV maker has officially started its recruitment process in India, marking a major step towards its long-awaited entry into the domestic market. On February 18, Tesla posted a job listing on LinkedIn for 13 different roles.
The report also said that Tesla will need to set up a manufacturing facility in India to make its cars more affordable and scale up its operations even if import duty is reduced below 20 percent.
The report highlighted that under India’s electric vehicle (EV) policy, Tesla can benefit from a 15 percent lower import duty on up to 8,000 units per year if it invests over Rs 4150 crore in setting up a local facility.
Overall, Tesla’s entry into the Indian market depends on whether it is willing to make significant investments in local manufacturing. Without this, even with the import duty reduced, Tesla’s cars may remain out of reach for a large segment of Indian buyers, the report said.