Tesla’s long-awaited entry into the Indian market is causing quite a stir. The company, led by Elon Musk, had been exploring land options for a manufacturing plant, but it has now confirmed that it will start by importing vehicles from its Berlin factory in Germany.
Initial expectations were that Tesla would bring an affordable electric vehicle (EV) to India, but analysts suggest that this might not happen straight away. Reports have hinted that Tesla might price an electric vehicle under Rs 25 lakh, but that seems unlikely, especially without a local manufacturing plant in place.
At present, the most affordable vehicle in Tesla’s range is the Model 3, which is priced just under $30,000 (around Rs 29.79 lakh), even after factoring in the 15% import tariff. According to Kumar Rakesh, an analyst at BNP Paribas India reportedly says, Tesla is aiming to launch a cheaper version of the Model 3 or Model Y by the second half of 2025.
However, he pointed out that even with a target price of $30,000 (after U.S. subsidies), this could still be considered too expensive for the mass market in India, especially once customs duties are added.
Tesla has also been facing challenges in Europe. Reports suggest that the company’s sales have dropped by a significant 45%. In Germany, it sold only 1,277 units, which marks its lowest sales figure since 2021. France saw a 63% decline in Tesla sales, and while overall EV sales in Europe surged by 37%, Tesla seems to be struggling to keep up.
To tackle these issues, Tesla is reportedly shifting its focus to the Model Y at its Gigafactory in Berlin. The company is betting that this new version of the Model Y could play a key role in boosting its presence in the European market.