TESLA launched yesterday its Model Y at about $70,000 in India, a significant markup relative to its other major markets, reflecting the country’s high tariffs on electric vehicle imports which CEO Elon Musk has long-criticised.
With deliveries estimated to start from the third quarter, the US automaker is targeting a niche electric vehicle segment in India that accounts for just 4 per cent of overall sales in the world’s third-largest car market.
It will compete mainly with German luxury giants such as BMW, Mercedes-Benz and South Korea’s Kia rather than domestic mass-market EV players such as Tata Motors and Mahindra.
Tesla opened its first showroom in Mumbai yesterday and began taking Model Y orders on its website, marking its long-awaited entry into the market where Musk once had plans to open a factory.
For now, Tesla will import cars into a country where tariffs and related duties can exceed 100pc, driving up the price for consumers.
Tesla’s Model Y rear-wheel drive is priced at about 6 million rupees ($70,000), while its Model Y long-range rear-wheel drive costs 6.8m rupees, according to the website.
The prices include the tariff and additional levies imposed by the state. There was no breakdown of the price on the website. They compare with a starting price from $44,990 in the US, 263,500 yuan ($36,700) in China, and 45,970 euros ($53,700) in Germany.
At the media-only event at the showroom, Tesla displayed two Model Y cars made in China and its supercharger, which it will install at eight different locations in Mumbai and in and around New Delhi, where it is also expected to open its next showroom.
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