Tesla enthusiasts in India may have to wait a little longer to get their hands on a Tesla car priced at Rs 20 lakh, according to industry experts. Reports recently circulated about Tesla considering a cheaper Model 3 in India and potentially setting up its supply chain ecosystem in the country. However, achieving this price range seems to be a distant dream for now.
Tesla currently maintains nearly the same prices worldwide, with the base variant of the Model 3 priced at $40,240 (approximately Rs 33 lakh). If imported into India, the cost of this particular model would range between Rs 60-66 lakh, due to the country’s 100 percent import tax on EVs priced above $40,000.
However, experts believe that this import duty could be avoided by establishing local production. Nevertheless, acquiring a $40,240 car for $24,366 (around Rs 20 lakh) still appears to be far-fetched. To reduce costs, Tesla models manufactured in India could have fewer features compared to those available in the US. For example, certain hardware required for Full Self-Driving (FSD) could be eliminated, and Advanced Driver Assistance System (ADAS) Level 2 could be included instead.
Other cost-saving measures could include using a battery pack with a capacity lower than 50kW and electric motors of lower power. In-vehicle electronics could be reduced, and a smaller center display could be used. While initial talks between the Indian government and Tesla have taken place, it may take some time before a Tesla facility arrives in the country. The company is also said to be in discussions with industry executives in India.
According to Prabhu Ram, Head of the Industry Intelligence Group at CyberMedia Research (CMR), the possibility of a Tesla car in India at Rs 20 lakh depends on various factors, including policy incentives and Tesla’s ability to achieve efficiencies in supply chain and costs through local manufacturing. However, it is too early to determine the impact Tesla’s entry into the Indian market will have on existing EV players.
Companies like Tata Motors and MG cater to the budget segment of the EV market, while Tesla’s price point positions it in the premium segment. While Tesla may gain a competitive advantage through policy incentives, current automotive market incumbents may also invest further and expand their EV portfolios.
Tesla’s entry into India is eagerly anticipated, and enthusiasts are hopeful of more affordable options in the future. However, it seems that the dream of owning a Tesla car priced at Rs 20 lakh will remain distant until various challenges, including import taxes and cost reductions, are overcome. Nevertheless, the automotive market in India is ever-evolving, and Tesla’s entry may provide a significant boost to the EV sector.
