MOHAMMAD ZIYAUDDIN
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As Tesla prepares to enter the Indian market this year, global capital markets firm CLSA has estimated that the company’s electric cars will cost at least ₹35-40 lakh, even if import duties drop below 20%.
The Model 3, Tesla’s most affordable EV in the US, starts at $35,000 (approx. ₹30.4 lakh) at the factory level. However, after adding import duties (expected to be 15-20%), road tax, insurance, and other expenses, the final on-road price in India is expected to be around $40,000 (₹35-40 lakh), according to CLSA.
“With import duties reduced to 15-20% in India, along with road tax, insurance, and other costs, the Model 3’s on-road price would be around $40,000 (₹35-40 lakh),” CLSA stated, as reported by ANI.
Tesla Model 3 vs Indian EVs: Higher Price Could Limit Market Disruption
Tesla’s entry into India’s EV market is unlikely to significantly disrupt domestic brands, as its prices are 20-50% higher than popular local models such as:
- Mahindra XEV 9e
- Hyundai e-Creta
- Maruti Suzuki e-Vitara
Market analysts believe Tesla’s premium pricing will place it in a niche segment, far above the mass-market EVs that are currently driving India’s EV growth.
Gurmeet Chadha, Managing Partner at Complete Circle Wealth, pointed out that only two of India’s top-10 selling cars are priced above ₹20 lakh—Hyundai Creta and Mahindra Scorpio.
This suggests that Tesla’s initial models may attract enthusiasts and luxury EV buyers, rather than becoming a mainstream competitor in India’s price-sensitive market.
When Will Tesla Launch in India?
Tesla is expected to start retail operations in India from April 2025. The company has already finalized showroom locations in:
- New Delhi (Aerocity)
- Mumbai (Bandra Kurla Complex - BKC)
Initially, Tesla will import its vehicles from Germany. If the brand sees strong demand in India, it may set up a manufacturing unit in the country. Andhra Pradesh has been actively trying to attract Tesla’s factory to the state.
Tesla Hiring in India: Signs of Market Expansion
Tesla has recently posted multiple job openings in India, specifically in the Mumbai Suburban area. The job roles include:
Service Advisor
Parts Advisor
Service Technician
Store Manager
Sales & Customer Support
Business Operations Analyst
Delivery Operations Specialist
Consumer Engagement Manager
These job postings come days after Tesla CEO Elon Musk met with Prime Minister Narendra Modi during his recent US visit, further solidifying speculation about Tesla’s India entry.
Tesla’s India launch is a highly anticipated event, but its premium pricing may keep it out of reach for mass-market buyers. While import duty reductions will slightly lower costs, the final on-road price of ₹35-40 lakh means Tesla will remain a luxury EV brand in India—at least for now.
With showroom locations, hiring plans, and potential manufacturing discussions in place, Tesla’s arrival in India is now a reality, not just speculation. However, its success will depend on demand for premium EVs and future price adjustments.
