As per the latest reports, the most affordable Tesla EV in India could cost less than Rs 17 lakh. If this turns out to be accurate, we will have a worthy rival to the immensely successful Tata Nexon EV. Admittedly, Tesla has been in talks with the Indian government regarding selling its EVs in our country for a couple of years now. However, due to various reasons, the American auto giant and the Indian authorities never reached a conclusion. Elon Musk has been insisting on asking India to reduce import duties so that he could offer its EVs at attractive prices. On the other hand, the Indian government wants Tesla to set up a manufacturing plant in the country first to boost the local economy. But recently, the PMO had asked the government to come to a conclusion by January 2024.
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Most Affordable Tesla in India
I have been reading about Tesla’s plans to launch a sub-$20,000 EV for emerging markets like India for a long time now. That translates to somewhere around Rs 17 lakh. Note that, the Tata Nexon EV currently sells between Rs 14.74 lakh and Rs 19.94 lakh, ex-showroom. Should the American EV giant somehow price its upcoming electric car around this price point, it will shake the entire market. The electric Nexon is, by far, the most successful EV in India ever since its inception. It has over 70% market share alone. That is a testament to how well the buyers have received it in India.
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Now, the argument that Tesla is making to bypass the exorbitantly high import duties by India is that these taxes are levied on luxury cars with a price of over $40,000. Above this amount, a whopping 100% tax has to be paid on the vehicle, straightaway doubling the price. For cars below this amount, there is still a substantial 60% import tax. These disturb the pricing of any car. Tesla wants its cars to not be treated as luxury cars but as eco-friendly vehicles. That is where Tesla is seeking clarification from the Government. To address this, the Government is working on a policy which should talk about this intricacy. We shall have to wait a couple of months before a concrete policy is available to clear any doubts.
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Why Would Tesla Be More Attractive?
If the price of the Tesla EV floats anywhere close to the Nexon EV, it will definitely shake up the market. I am sure everyone must be aware of the brand value Tesla carries. It is the largest EV maker on the planet. Not only that, it is responsible for the revolution in the EV space globally. That is why it is regarded as the poster boy for the electric revolution in the mobility space around the globe. In fact, many new-age EV startups have the sole aim of displacing Tesla from the top by offering alternatives to its cars. Essentially, Tesla has set a benchmark in terms of performance, build quality and technology to shape the future of mobility around the world.
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In addition to that, the inherent advantage of any Tesla car over the Tata Nexon is the fact the former is developed from grounds up on a dedicated EV platform. On the other hand, the Nexon EV is simply a converted model from its ICE counterpart. That plays a huge role in the interior space and packaging. Not to mention, the chassis stability and battery & electric motor placement can alter the very driving dynamics of cars. Hence, the Tesla would certainly be a more fun-to-drive option of the two. It would draw in more buyers, especially if the price difference is small.
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Global Expansion Plans
What is interesting is the fact that at the moment, Tesla is focusing on expanding its global footprint. Having already been mega-successful in the UK, Europe and China, it now aims to venture into emerging markets like India. It senses the immense opportunities which lie in such a country where people are updating their living standards rapidly. The Indian market is opening up to the idea of electrification. The charging infrastructure is being developed at an unprecedented pace. The EV sales numbers in the last couple of years have posted astronomical growth. Hence, Tesla wants to be there when this massive transition in India happens.
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Author’s Note
The electric vehicle industry is heating up at the moment. This is true not just for India, but the globe. While the Scandinavian nations have already achieved some incredible feats in terms of mass adoption of EVs, the rest of the world, particularly the developed countries, are catching up too. Most top global automobile companies have already announced their ambitious plans to go carbon neutral in the coming years. This includes manufacturing eco-friendly vehicles like hybrid and full electric, as well as taking care that the production facilities also derive their power from renewable sources of energy.
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Hence, the EV mass adoption looks imminent at this point. Let us see how things turn out between Tesla and the Indian government in the immediate future. This partnership could change the course of history, as far as the Indian automobile industry is concerned. If the upcoming Tesla EV becomes the most affordable product from the American carmaker in India at around Rs 17 lakh or even Rs 20 lakh, it will wage a price war. Therefore, we shall keep a close eye on the latest developments in this case.
