Tesla has finally officially entered the Indian market, one of the last major markets where its electric cars have not yet been sold. This was preceded by several unsuccessful attempts. However, this time, instead of taking advantage of favorable conditions to reduce duties, the automaker set prices that simply do not correlate with the local market.
Over the past 5 years, there have been several attempts to withdraw Tesla to the Indian market, but each of them ended in nothing. Only recently has the situation begun to change. India has finally made concessions by revising its strict policy on car imports. Last year, the government agreed to significantly reduce duties on electric vehicles, but on the condition that the automaker invests in local production and builds a plant in India within a few years.
After that, Tesla was actively preparing to enter the Indian market. The company began hiring customer service staff, looking for locations for stores and service centers. It seemed that the market entry was already in the home stretch. But earlier this year, there were reports that Tesla had informed the Indian government that it had no plans to build a factory — and, accordingly, the company would not enjoy import privileges.
Despite this, Tesla has officially opened pre-orders for Model Y in India. The first deliveries are expected in the third quarter of 2025. But the prices are shocking:
- The Model Y RWD costs ₹6107190 — that’s about $71 thousand.
- Model Y Long Range — ₹6915190, or $80 thousand.
For comparison, in the US, the price for the same models is almost half as much. This clearly indicates that Tesla has decided not to take advantage of the duty reduction agreement, which automatically made prices in India super high.
Tesla is officially entering one of the largest markets, but it is doing so without lowering prices and without production in the country itself. Despite the formal launch, there will be no real breakthrough in the market until the company adapts its strategy to the specifics of the region — and this is primarily price, availability, and localization.
Source: electrek
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