Tesla’s Starting Price In India To Be Rs. 40 Lakh: Here’s The Math Behind It
The Indian government has given Tesla and other major electric automakers a huge sigh of relief. Recently, a new EV policy has been passed by the government of India, which paves way for Tesla’s entry. Now, a lot of people have been wondering about how much the most affordable Tesla will cost in India. Well, the answer is that it will cost under Rs 40 lakh. Here’s the math behind the starting price of Tesla vehicles in India.
Tesla Model 3 to cost under Rs 40 lakh
Currently, the Tesla Model 3, which is the most affordable model in its lineup, is priced at $38,990 in the US. This means that with a conversion rate of Rs 82.9 against the dollar, the Tesla Model 3 costs Rs 32.32 lakh. Now because of the new EV policy, the tax levied on the import of this EV will be 15 percent.
This will bring the final cost of the Tesla Model 3 to Rs 37.17 lakh (ex-showroom). Now because electric cars in India enjoy lower road taxes, its on-road price will be under Rs 40 lakh. Apart from the Model 3, the company is also looking to offer its other popular models in India as well.
Other Tesla car prices
Apart from the Tesla Model 3, the company will also bring its popular crossover Model Y to India. The Model Y is one of the best-selling electric cars of all time. It is currently priced at $43,990. After conversion, its price comes out to about Rs 36 lakh. With the new 15 percent import tax and other taxes, it will cost under Rs 44 lakh on-road.
Additionally, Tesla will also offer its luxury sedan, the Model S, in India as well. This model in the US is priced at $74,990. When converted to Indian currency, its final on-road could be around Rs 75 lakh. Whether Tesla will be bringing its Model X Electric SUV or the Cybertruck electric pick up truck to India is unclear for now.
New EV Policy
For those who may still not be aware, the government of India, as stated above, has introduced a new EV policy. This new policy has been made to help Tesla make a smooth entry into the Indian automotive market. Other international EV makers are also expected to benefit from the new EV policy.
This new EV policy allows international carmakers who invest a minimum of $500 million in India to have some benefits. The main benefit being that these carmakers will be able to import 8,000 cars annually at an import tax rate of 15 percent. For this price of the cars should be more than $35,000.
Prior to this policy, the import duty on electric cars ranges from 70-110 percent. And because of these extensively high tax rates, Tesla had shelved its plan to enter India. Now following the meetings between the Indian government officials and Tesla officials, this new EV policy has been passed.
The government of India has also added a clause in the new EV policy. Under this New EV policy, carmakers will have to source a significant portion of components domestically. The targets set by the government of India include parts sourcing: 25% parts within three years, and 50% parts within five years.
Apart from Tesla, Vietnamese electric car maker VinFast is also expected to benefit from the new EV policy. In fact, VinFast has already announced an electric car factory in Tamilnadu’s Thoothukudi.
The post Tesla’s Starting Price In India To Be Rs. 40 Lakh: Here’s The Math Behind It first appeared on Cartoq.
The Indian government has given Tesla and other major electric automakers a huge sigh of relief. Recently, a new EV policy has been passed by the government of India, which paves way for Tesla’s entry. Now, a lot of people have been wondering about how much the most affordable Tesla will cost in India. Well, the answer is that it will cost under Rs 40 lakh. Here’s the math behind the starting price of Tesla vehicles in India.
Tesla Model 3 to cost under Rs 40 lakh
Currently, the Tesla Model 3, which is the most affordable model in its lineup, is priced at $38,990 in the US. This means that with a conversion rate of Rs 82.9 against the dollar, the Tesla Model 3 costs Rs 32.32 lakh. Now because of the new EV policy, the tax levied on the import of this EV will be 15 percent.
This will bring the final cost of the Tesla Model 3 to Rs 37.17 lakh (ex-showroom). Now because electric cars in India enjoy lower road taxes, its on-road price will be under Rs 40 lakh. Apart from the Model 3, the company is also looking to offer its other popular models in India as well.
Other Tesla car prices
Apart from the Tesla Model 3, the company will also bring its popular crossover Model Y to India. The Model Y is one of the best-selling electric cars of all time. It is currently priced at $43,990. After conversion, its price comes out to about Rs 36 lakh. With the new 15 percent import tax and other taxes, it will cost under Rs 44 lakh on-road.
Additionally, Tesla will also offer its luxury sedan, the Model S, in India as well. This model in the US is priced at $74,990. When converted to Indian currency, its final on-road could be around Rs 75 lakh. Whether Tesla will be bringing its Model X Electric SUV or the Cybertruck electric pick up truck to India is unclear for now.
New EV Policy
For those who may still not be aware, the government of India, as stated above, has introduced a new EV policy. This new policy has been made to help Tesla make a smooth entry into the Indian automotive market. Other international EV makers are also expected to benefit from the new EV policy.
This new EV policy allows international carmakers who invest a minimum of $500 million in India to have some benefits. The main benefit being that these carmakers will be able to import 8,000 cars annually at an import tax rate of 15 percent. For this price of the cars should be more than $35,000.
Prior to this policy, the import duty on electric cars ranges from 70-110 percent. And because of these extensively high tax rates, Tesla had shelved its plan to enter India. Now following the meetings between the Indian government officials and Tesla officials, this new EV policy has been passed.
The government of India has also added a clause in the new EV policy. Under this New EV policy, carmakers will have to source a significant portion of components domestically. The targets set by the government of India include parts sourcing: 25% parts within three years, and 50% parts within five years.
Apart from Tesla, Vietnamese electric car maker VinFast is also expected to benefit from the new EV policy. In fact, VinFast has already announced an electric car factory in Tamilnadu’s Thoothukudi.
The post Tesla’s Starting Price In India To Be Rs. 40 Lakh: Here’s The Math Behind It first appeared on Cartoq.
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