EV Import Duty Reduction Could See Tesla Launching Model Y At Below Rs 40 Lakh?

It is clear that Tesla for starters will most likely sell its EVs via the import route with no manufacturing in India as of now while later things can change

The Model Y which is a luxury EV could sell at Rs 40-50 lakh with lowered duties

Source : Somnath Chatterjee

The Government could reduce EV import duty in India to as low as 15 percent from 110 percent. While not official, this is to open doors to more global EV players to speed up electrification in India. This also comes with certain conditions in terms of investments and revenue targets. However, this move resulted in players like Tesla bringing in its global cars at prices nearly matching those at other markets.

 

That said, looking at the current cars that Tesla makes globally, these are premium cars and won't be looking at the budget end. With these reduced duties, the Model Y could be an attractive luxury electric car while not exactly being a rival to the current compact segment EVs. It is clear that Tesla for starters will most likely sell its EVs via the import route with no manufacturing in India as of now while later things can change.

 

 

The Model Y which is a luxury EV could sell at Rs 40-50 lakh with lowered duties. However, it all depends on the future plans which Elon Musk has chalked out for India but if local manufacturing is not on the cards this would not happen.

 

Tesla will bring EVs via the import route but they would be expensive while not falling under this scheme if implemented. Tesla is clearly a premium EV maker in context to the Indian market with its cars competing at the higher-end and in India, it will rival luxury EV players like BYD, Mercedes-Benz and BMW.