Not only in India but also in the United States, Elon Musk’s intention to build a Tesla plant there has spurred extensive conjecture. Still, import taxes remain a major obstacle, and former US President Donald Trump appears not really happy about it either. One important question looms big among all this: what will be the price of Tesla cars on the Indian market?
A study by The Economic Times indicates that should Tesla enter the Indian market, Musk is probably going to get a 20% cut in import duties. Notwithstanding this, industry analysts estimate that Tesla’s environmentally friendly vehicles will cost anywhere between 35 to 40 lakh rupees. This begs questions about how many middle-class Indians might buy Musk’s cars.
It estimated that import duties for 15 to 20,35,000; which translates to approximately 30.4lakh rupees in Indian currency. Import estimates for Tesla’s environmentally friendly vehicles range from 15 to 2040,000, or 35 to 40 lakh rupees.
Electric vehicles from other brands including Mahindra’s eSUV 900, Hyundai’s Kona Electric, and Maruti Suzuki’s WagonR EV have already lost appeal in India. Given that Tesla’s vehicles are predicted to be 20 to 50% more costly than these models, it seems improbable that these brands will cause major rivalry for the company.
Leading research company CLSA’s analysis shows why Tesla’s arrival into India might not be revolutionary. According to the study, sales of environmentally friendly, battery-operated cars in India remain much lower than those in China, the United States, and Europe. Of the 4.3 million passenger cars sold in India last year, just 99,165 were electric cars. Indian buyers still like hybrid passenger cars, diesel, or gasoline. Considering the high price range, Tesla’s vehicles are not expected to appeal to the general public fast. Rather, demand for Tesla cars is projected to stay restricted to the highest levels of society.
The Economic Times claims that within the next few months, Tesla will introduce its battery-operated cars in Delhi and Mumbai. Musk started official Indian market investing already. To show its intention to be heavily visible in India, the international corporation placed a job offering on LinkedIn for a Consumer Engagement Manager in the Mumbai Metropolitan Area on February 18.
