Tesla : These rumors raise the possibility that Tesla would ship the affordable Model 3 to India, where it is anticipated to cost around 20 lakh rupees. The Indian Ministry of Finance repeated on Thursday that they are not considering any tariff exemption for the American automaker, according to Revenue Secretary Sanjay Malhotra’s comments to Reuters.
Elon Musk, the CEO of Tesla, had previously stated that Prime Minister Narendra Modi was urging the automaker to make “significant investments” in the country and that he expected a declaration to be made shortly.
During negotiations, the Indian government earlier turned down the American automaker’s demand for a duty exemption on the import of their electric vehicles (EVs).
Malhotra said, “The revenue department is not actively considering any kind of duty waiver for Tesla so far.” in regards to a duty relief for Tesla.
On Thursday, industry experts added that the 20 lakh rupee price tag for the entry-level Tesla model felt like a distant fantasy. The base model of the Tesla Model 3, which is currently the most cheap Tesla model on the market, costs $40,240 (about 33 lakh rupees), according to experts who assert that Tesla’s prices are essentially the same everywhere.
Importing this model into India would run between 60 and 66 lakh rupees. India requires EVs costing more than $40,000 to pay a 100% import duty.However, boosting domestic production might get rid of this import tax. Despite this, Sowmen Mandal, a senior analyst at Counterpoint Research, told IANS that buying a car for $24,366 (about 33 lakh rupees) still looks like a pipe dream.
If the Tesla Model made in India had less features than the versions accessible in the United States, this price reduction might be possible. Analysts predict that the imported battery pack from China will have a less powerful electric motor with a capacity of under 50 kW.
Analysts assert that a smaller primary display and fewer devices can be used in cars.
Given that preliminary discussions between the Indian government and Tesla are still ongoing, the construction of Tesla facilities in India may take some time. According to The Economic Times, Tesla has business leaders in India on its agenda as well. Furthermore, there are claims that Tesla is creating a framework for its ‘next-gen’ electric cars that will accommodate small cars.
The statement claims that the production costs of this platform “are anticipated to be about 50% lower than those of the current platform, enabling Tesla to enter the EV segment for under $25,000.” We anticipate that India would develop into a manufacturing hub for these little models with prices starting at 20 lakh rupees, continued Mandal.
Recent problems in China may have inspired Tesla to research and establish manufacturing facilities there.
The ability of Tesla to sell vehicles will be shaped by an array of factors, including the potential incentives offered by governments, the capacity of Tesla to reduce supply chain costs, and the successful utilization of local manufacturing in India for around 20 lakh rupees. According to Prabhu Ram, head of CyberMedia Research’s (CMR) Industry Intelligence Group, pricing decisions will be based on Tesla’s business plan.
Existing participants in the automotive business will be encouraged to develop and extend their EV portfolios where Tesla can gain competitive advantage through regulatory incentives, Ram continued. “The automotive industry faces fierce competition.
However, it is still unclear how Tesla’s entry into the Indian EV industry will affect current EV companies. While Tesla’s pricing range places it in the luxury class, businesses like Tata Motors and MG serve the low-cost EV market.