The stage is all set for Musk-led Tesla in India as he plans to open its first showrooms in India this July. The company is attempting to make a foothold in India, which is the world’s third-largest car market, even as it experiences a decline in sales in Europe and Chinese markets.
The company has chosen Mumbai as its first retail location, which will be followed by the other in New Delhi. For sales in India, the company has imported different components like Supercharger units, branded merchandise, vehicle accessories and spare parts from various countries including America, China and the Netherlands.
As per a report by The Times of India, the first model, which is the Model Y rear-wheel drive SUV, has been delivered from Tesla’s Chinese manufacturing facility. It is Tesla’s best-selling electric vehicle globally.
What would be the total cost for Tesla?
The new vehicles face a high tariff and import duties in India. According to reports, Tesla has imported five Model Y vehicles to Mumbai. These are valued at 27.7 lakh rupees ($31,988). This followed the import duty of over 2.1 million rupees as India enforces a 70 per cent tariff along with other charges on fully imported vehicles priced under Rs 34.63 lakh rupees ($40,000 USD).
According to reports, in India, the vehicle would be sold at a price point above $56,000 without considering taxes and insurance. However, based on profit margin and market considerations, the final price would be decided by Tesla. The significant cost poses a big challenge to Tesla as the affordability factor plays a crucial role in the Indian Market.
