In a significant development, billionaire Elon Musk's electric vehicle (EV) maker Tesla is all set to start its services in India. The first Tesla Showroom in India will open its doors to customers at Maker Maxity Mall in Mumbai’s Bandra Kurla Complex (BKC) on Tuesday. Tesla in India has raised eyebrows around the world, as India is said to be one of the fastest-growing EV markets in the world.
As per reports, Tesla Mumbai Showroom will serve as the company's main display and customer experience centre, offering visitors a chance to view the vehicles up close and understand Tesla’s technology.
Tesla Car Price in India
As per reports, Tesla will begin its India journey with the Model Y SUV. The Model Y rear-wheel drive is priced at Rs 60 lakh (around $69,765) for customers paying in cash. The long-range rear-wheel drive variant comes in at a higher price of Rs 68 lakh.
Notably, these prices are higher than Tesla’s base pricing in other markets. For instance, in the U.S., the Model Y starts at $44,990, while in China it is priced at 263,500 yuan, and in Germany at 45,970 euros.
Interestingly, it means Tesla's price in India is 55.1% costlier as compared to the US, approx 68.5% costlier as compared to China and 40.1% costlier as compared to Germany.
The math behind Tesla India's price comparison
India Price−U.S. Price
________________________*100
US Price
Why are Tesla prices in India costlier than in other countries?
The answer is taxes. Tesla has come up with a price keeping multiple factors in mind. It includes high import duties (up to 100% on fully built units), Logistics and distribution costs, Lack of local manufacturing (for now), and Additional GST and road taxes.
Tesla to sell 'made in China' EV cars (for now)
The higher price in India is mainly due to import duties, as the Model Y will be sold as a completely built unit (CBU). Tesla’s Model Y units are expected to be imported from the company’s Gigafactory in Shanghai. The Shanghai facility is currently the production hub for many of Tesla’s international markets. For India, Tesla has so far imported six units of the Model Y SUV, which are expected to be used for display and test drives at the Mumbai showroom.
Along with the vehicles, Tesla has also brought in Supercharger equipment and accessories worth nearly $1 million into India. These items have been mostly sourced from China and the United States. The Superchargers are likely to be installed in and around Mumbai to support early adopters of the brand.
The Mumbai showroom is expected to be the first of many locations Tesla may open across India, depending on the market response. The company is also preparing a service centre in Kurla West, Mumbai, to handle maintenance and after-sales support for its vehicles.