Winning Bizness Desk
Mumbai. Tesla, the world's largest electric vehicle (EV) manufacturer, is set to begin selling cars in India from April. However, the company will not establish a manufacturing unit in the country yet. Instead, Tesla will import vehicles from its Berlin-Brandenburg Gigafactory in Germany.
Reports suggest that the company plans to introduce its most affordable EV in India, expected to be priced around $25,000 (approximately ₹21.71 lakh). However, due to India’s current import duty policies, the estimated price of this model in India could rise to ₹36 lakh.
Custom Duty Could Impact Pricing
Currently, imported EVs attract a 75% basic custom duty in India. However, if manufacturers sign a Memorandum of Understanding (MoU) with the Indian government, the duty can be reduced to 15% for vehicles priced above $35,000. This exemption will only apply if the company limits its annual sales to 8,000 units and commits to setting up a local manufacturing facility within five years. There is speculation that India’s EV import policies may soon change, with new guidelines expected by the end of March.
Possible Launch of Model 3 and Model Y
There are also reports that Tesla CEO Elon Musk may introduce Model 3 and Model Y in India. However, these models are priced at over $44,000 in international markets. It remains to be seen how Tesla adjusts the specifications and pricing to suit Indian consumers.
The company has finalized locations for its first two showrooms in India. In Delhi, Tesla's showroom will be located in Aerocity, near Indira Gandhi International Airport. In Mumbai, the showroom will be set up at Bandra Kurla Complex, a prime business district near Chhatrapati Shivaji Maharaj International Airport.
Tesla to Source ₹8,000 Crore Worth of Auto Parts from India
Despite not setting up a manufacturing unit in India immediately, Tesla is expected to procure auto components worth ₹8,000 crore from Indian suppliers this year. This move aligns with the company’s broader strategy of engaging with Indian manufacturers and suppliers for its global production network.
