Tesla Cars To Soon Sell In India? The Competition And Elon Musk's Advantage
NDTV
Over the past few years, Tesla has expressed interest in entering the Indian market, hindered mainly by steep import duties.
Elon Musk is expected to visit India to meet Prime Minister Narendra Modi next week and announce an investment of $2 billion - $3 billion in setting up a Tesla manufacturing unit in the country.
Over the past few years, Tesla has expressed interest in entering the Indian market, hindered mainly by steep import duties. However, with the recent announcement of reduced import tariffs for Electric Vehicles (EVs) priced above $35,000, provided the manufacturer gives a guarantee of investment of Rs 4,150 crore and sets up the manufacturing plant within three years with 25% localisation and subsequently achieves 50% localisation within five years, it is now presumed that Tesla will finally make its much-awaited India entry.
Speculation is rife about Tesla's plans for India. For starters, the $35,000 mark means Tesla can start importing all of its vehicles - its cheapest product in the US market is the Model 3, with a starting price of over $40,000. Tesla currently has a portfolio of four products.
We can expect these to come to Indian shores soon to compete in the premium and luxury EV space. Tesla products are expected to have a price advantage over existing luxury and premium EV players. In the luxury space, players like Mercedes and BMW have already made some investments and it is yet to be seen if they are eligible to avail the import duty benefits in the new scheme.
