Tesla’s Entry into Indian Markets Remains Unclear

  • Market Overview

The EV Car maker giant Tesla Inc (NASDAQ: TSLA ) is set to start the sale of the Tesla Model 3 by end of the year. The company even set up an office in Bengaluru.

Tesla plans to import and sell the Model 3 in India through CBU (completely Built-Up) model. The Model 3 is the most affordable car in the company’s line-up, and the price in India could range from Rs 55-60 lakh, according to reports. Globally, the EV is packed with various powertrain options. While the base model churns out 283 Bhp and 450 Nm and achieves a 0-100 in 5.5 seconds, the top-spec Model 3 is capable of 450 bhp and 639 Nm with 0-100 in 3.3 seconds. Both models also get different top speeds and ranges.
The Setback

  • Tesla CEO Elon Musk has himself expressed concern about India's high import taxes on cars. He also mentioned import duty of EVs remains the same as of diesel- and petrol-powered cars which are against India’s Climate Change goals.
  • Despite the fact that the central government boosted local production of electric vehicles and furthermore presented tax breaks for individuals who purchase electric vehicles. However, there is no such incentive for selling or buying imported vehicles through the CBU model.
  • In response, the Indian Government says, it can reduce the import duty only under one condition which is the company needs to set up a manufacturing plant in the country.
  • In his reaction, Musk claimed that building a manufacturing facility is just conceivable if the imported Tesla vehicles get a decent reaction in the Indian market. In his tweet, he said, “If Tesla is able to succeed with imported vehicles, then a factory in India is quite likely."


While the whole world is going green, it's high time that India should do the same, although there were big announcements made by the government in promoting EVs there is no clear roadmap for operations as well as strategies for attaining climate changes goals.

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