Tesla Launches in India with High Prices
Tesla has finally entered the Indian market by introducing the updated Model Y. However, the base variant of this electric vehicle costs 61.07 lakh rupees (approximately 71 thousand dollars) due to high import duties. The long-range version of the Model Y will cost Indian buyers 80.5 thousand dollars, while in the USA it costs only 46.6 thousand.
The company plans to open only two showrooms – in Delhi and Mumbai. Currently, two versions of the Model Y are available: the standard rear-wheel drive (acceleration to 100 km/h in 5.9 seconds, range of 500 km) and the long-range version (622 km). For comparison, in Germany these models are significantly cheaper – 53.7 and 59.5 thousand dollars respectively.
Why Are Imported Car Prices So High in India?
The main reason is high import duties, which can reach 110% for cars that are completely manufactured outside the country. This applies not only to Tesla but also to other premium brands. For example, the BMW M4 Competition xDrive in India costs almost twice as much as in the USA. A similar situation exists with the Porsche 911, whose price in India exceeds 246 thousand dollars.
However, cars that are assembled locally (like some BMW models) have significantly more affordable prices, close to European ones. This highlights the importance of local production for reducing the final cost.
It is worth noting that the high prices of premium cars in India are not only a consequence of customs policy but also of the specifics of the local market, where the demand for luxury goods remains stable despite a significant price difference compared to other countries. Perhaps this is why Tesla, despite the lack of its own production in the country, decided to start in this market.