In April 2016, Elon Musk urged Indians to preorder the Tesla Model 3, and many enthusiasts did just that. One was Vishal Gondal, who paid a $1,000 deposit. But eight years on, Tesla has yet to launch in India, leaving customers like Gondal opting for alternatives such as Audi's electric SUV after getting their deposits back. The delay is attributed to Tesla's concerns about steep Indian taxes and the complexities of establishing a local factory.
Despite the hype, Tesla has struggled to enter India's market, currently dominated by affordable vehicles such as those from Maruti Suzuki. The average price of a car in India is $14,000, far below Tesla's pricing of about $40,000 for a Tesla 3 in the US—a price that, in India, is what luxury vehicles sell for. Last year, India reduced import duties on EVs to 15% from up to 100% for vehicles under $35,000, on the condition that manufacturers build factories locally within three years. Musk cited these high duties in 2019 as a barrier, saying they could double Tesla prices in India.
India's luxury and electric vehicle market is evolving, with local brands like Tata Motors and Mahindra, as well as international players such as BYD, gaining ground. Analysts suggest Tesla would need to price its cars around $30,000 to compete. "The only way to do that is if they build that car in India," said Ishan Raghav, the managing editor of the Indian car magazine autoX. Tesla has not clarified its plans for India, with Musk axing an expected trip to the country in April. (This story was generated by Newser's AI chatbot. Source: the AP)
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