Tesla Motors Inc Plans To Enter India

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Tesla Motors Inc Plans To Enter India
Blomst / Pixabay

Tesla Motors Inc (NASDAQ:TSLA) is planning to enter the Indian market with its upcoming sedan, according to the Economic Times. For emerging markets like India, Tesla is working on its third-generation four-door sedan code named Model 3, which is smaller and more affordable than the firm’s current offerings.

High import duty a concern

According to Tesla Motors chief information officer Jay Vijayan, the company is targeting $30,000 to $40,000 price range (approx. Rs 18-24 lakh) for the Model 3 making it an “ideal product in the luxury car segment.”

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The Tesla Model S is priced over $100,000 (around Rs. 61 lakh). The executive noted that a support from the Indian government will be essential to make its cars a success in the country. In the U.S., each electric car enjoys a direct subsidy of at least $7,500.

According to the executive, the sedan will be priced at less than half of the existing model, and this is despite the fact that India has a high import duty. Talking about the import duty, Vijayan noted that India has one of the highest import duties in the world (over 100%). This is of import to Tesla as it will be importing the cars from its plants at Freemont in the U.S. or the assembly unit in Netherlands.

Will Tesla set up manufacturing plant in India?

Hinting on setting up a manufacturing plant in the country, the executive says that they have