The EV giant Tesla has been conquering every market they are introduced to. However, India seems to be tricky for the American carmaker. Elon Musk confirmed to enter the Indian market in 2019 and buyers are really eager to know when will Tesla debut in India. So what exactly is stalling their arrival? Continue reading to know more. 

Import duties 

Tesla has already got the green light to sell 7 of its models in India. The cars have been spotted testing many a time in India. And Tesla intends to import all their cars as completely built units (CBU). But CBUs are a nightmare for both the carmaker and the customer. 

Import duties on automobiles in India are probably the highest across the globe. The import duty on a new car with a CIF value less than $40,000 is 60% of the car value. If the CIF value is more than $40,000 the duty is 100% of the car value. 

This turns out to be the deciding factor for them. The cheapest Tesla which happens to be the Model 3 would cost around ₹60.00 lakh (ex-showroom) after including the import duties. An EV costing 60+ lakhs in India will fall under the luxury car category attracting a different group of buyers. 

Tesla has already registered their company in Bengaluru and has already hired people. Elon Musk has been in constant talks with the government of India requesting to cut down the duties. But many state governments are offering to provide free lands and support them in any way necessary. 

By introducing CBUs Tesla wants to see customers’ responses and evaluate the market. If deemed worthy, Tesla would later invest in a mega manufacturing plant in India. If everything works out perfectly we will shortly see Tesla in India. 

Tesla Cars 

Currently, Tesla sells the Model 3, Model S, Model Y and Model X. Tesla cars price in India will vary from ₹ 60 lakh to ₹ 2.0 crore (ex-showroom). They are likely to launch the Model 3 in India and go up the order. 

Their new addition is the Model S Plaid which is an improvement of the Model S with a trimotor setup. But the most awaited launch from Tesla is the Cybertruck. The Cybertruck was showcased back in 2019 and after many delays, the pickup truck is likely to be launched next year. 

FAQs 

1. Is Tesla Motors a German or American company?

Tesla Motors is an American company that makes battery electric vehicles, energy generation and storage systems for different purposes. 

2. Does Tesla sell 7-seater SUVs?

Yes, Tesla sells the Model Y and Model X 7-seater SUVs. 

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