By Admin 
Tesla model y in india: Alan Musk’s company Tesla has finally taken the official entry in India and Model Y has been launched. Its initial ex-showroom price is 59.89 lakhs, while the long range variant reaches 68 lakhs. This car is available only in the rear-wheel-drive (RWD) configuration.
The company has also opened India’s first showroom at Mumbai’s Bandra-Kurla Complex (BKC). However, a few weeks after the launch, there are reports that Tesla prices can be cut by up to Rs 15-20 lakh.
Why Tesla so expensive in India?
The price of Tesla Model Y in India is much higher than in American and Chinese markets. In the US, the same car is available for about $ 44,990 i.e. 38.60 lakhs, while in China it is 31.5 lakhs and about 46 lakhs in Germany.
The biggest reason for the high prices in India is import duty, which is imposed from 70% to 110%. Since Tesla is currently entering India through CBU (Completely Built Unit) vehicles, it is being taxed in India.
Import duty is the biggest obstruction
Alan Musk has expressed concern about India’s import duty many times. He tweeted in 2021 and said that the import duty on vehicles in India is the highest in the world.
He believes that before setting up a factory in India, he wants to see how the demand in the market is, but due to such an expensive price, the car does not reach the customers.
Displeasure of domestic companies also became a hurdle
While Musk is demanding relief from the government, desi companies like Tata Motors and Mahindra have opposed it. He says that if foreign companies are exempted from import duty, then it will be injustice to local investors who have already invested heavy.
What is the new EV policy of the government?
In March 2024, the Government of India introduced the new Electric Vehicle (EV) policy, under which foreign companies will be allowed to import 8,000 electric cars every year on 15% import duty, if they invest more than ₹ 4,150 crore in India. However, to avail this facility, companies will also have to accept certain conditions.
They will have to start local production in India within three years.
By the third year, 25% localization and 50% localization will be necessary by the fifth year. In addition, the priced of imported vehicles should be more than $ 35,000 (about ₹ 29 lakh).
The purpose of this policy is to promote local production in India and attract foreign investment, but also strengthen ‘Make in India’.
Tesla’s next move: Will a factory be built in India?
Tesla has not yet made any official announcement to set up a factory in India. However, in 2024, Alan Musk had a plan to visit India, in which he was scheduled to meet Prime Minister Modi and was expected to announce an investment of $ 2–3 billion.
However, the tour was canceled at the last minute and no update came after that.
Can the price decrease with trade deal?
There is a conversation on a trade deal between India and the US, including the issue of reducing import duty on cars. The US wants India to remove the duty on automobiles, so that Tesla and other American companies can get easier in India.
If this trade deal is finalized before 31 July 2025 and import duty is reduced, then it may cause a drastic drop in the prices of Tesla Model Y.
How much can the price of Tesla decrease?
If Tesla is exempted under EV policy or import duty is reduced through trade deal, then the price of Model Y can come down from 60 lakhs to 45 lakhs.
Auto experts say that Tesla’s cars will be able to reach the mid-segment EV buyers, which are currently away from Tesla due to the price. This will not only increase the sales of the company but will also strengthen its brand domination in India.
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