How much will Tesla’s cheapest car, the Model 3, cost in India? – Auto News

As Tesla gears up for its long-awaited entry into India, a report by global capital market firm CLSA highlights that the automaker’s cheapest model will be priced between Rs 35-40 lakh. Despite an expected reduction in import duties to 15-20%, additional costs such as road tax and insurance will keep the on-road price significantly high.

Will Tesla’s high prices limit its success in India?

Tesla’s Model 3, which costs around USD 35,000 (Rs 30.4 lakh) in the US, would see a price increase once imported to India. The report suggests that if the Model 3 is priced 20-50% higher than domestic electric vehicles like the Mahindra XEV 9e, Hyundai e-Creta, and Maruti Suzuki e-Vitara, it is unlikely to disrupt the market.

The report emphasises that Tesla would need to establish a manufacturing facility in India to lower prices and expand its reach. Under India’s EV policy, Tesla could benefit from reduced import duties of 15% on up to 8,000 units annually if it invests over Rs 4,150 crore in local production.

Indian consumer price sensitivity

Drawing parallels with the motorcycle market, the report notes that Harley-Davidson’s X440, priced 20% higher than the Royal Enfield Classic 350, sells only 1,500 units monthly compared to the Classic 350’s 28,000 units. This trend suggests that Tesla may struggle to gain traction without competitive pricing.

Meanwhile, Tesla has begun hiring in India, signalling progress towards its launch, with initial operations expected in Delhi and Mumbai.

(With ANI inputs)

_{Images are for reference only.Images and contents gathered automatic from google or 3rd party sources.All rights on the images and contents are with their legal original owners.}