Tesla is currently in the works of entering the Indian market, and the tax reduction could help the American company introduce a wide array of its products here. “There is an understanding with Tesla’s proposal and government is showing interest,” said an official, who is familiar with the issue.
If the policy is adopted, it could result in a drastic reduction in the prices of fully-imported EVs, not only helping Tesla, but also benefiting other local players including luxury car manufacturers. Moreover, the policy could also tempt other global carmaking giants to consider setting up a manufacturing facility in India and enter the lucrative Indian automobile market in the future.
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For Tesla, this means that it would be able to introduce its globally available vehicles like Model S, Model 3, Model X and Model Y to the Indian market at a competitive price, and not only rely on the new entry-level car it is working on for the country. For reference, the Tesla Model 3 is currently the brand’s most affordable EV, priced from $32,740 (after tax credit), which converts to Rs 27.06 lakh in Indian currency! The new policy could also result in a reduction in the prices of already available CBU EV models like Kia EV6, BMW i4, among others.
Would you consider purchasing a fully-imported EV over a similarly priced ICE vehicle if the government goes ahead to slash the import tax rate from 100% to 15%? Let us know in the comments down below.