Tesla Model Y could become ₹20L cheaper by 2030
What's the story
Tesla is optimistic that Indian buyers will save up to a third on the price of its popular Model Y over the next four to five years. The company's India General Manager, Sharad Agarwal, told Reuters that the savings could be as much as ₹20 lakh. The move is part of Tesla's strategy to tap into India's fast-growing electric vehicle (EV) market and make its products more affordable for consumers here.
Market penetration
Tesla's pricing strategy in India
Currently, the entry-level Tesla Model Y is priced at around ₹60 lakh in India. This is nearly three times more than the average price of ₹22 lakh for most other EVs in the country. The high cost is mainly due to import duties levied on cars in India, which Musk has previously described as some of the highest globally.
Hurdles
Challenges in the Indian EV market
Tesla's journey in the Indian EV market has been challenging, and not just because of the high prices. The company had hoped that trade talks between India and the US would ease import duties, which can go up to 110%. However, the prospects for a bilateral trade agreement have dimmed.
Market competition
Tesla's competition in India
Notably, Tesla has entered a market dominated by Mercedes-Benz and BMW, which together account for nearly 80% of India's luxury EV sales. Last month was a record for India's EV market with overall passenger EV sales jumping 57.5% year-on-year to 18,055 units. Tata Motors, JSW MG Motor, and Mahindra & Mahindra led this growth.