The American EV giant has finally commenced its operations in India after years of discussions and talks
Just a couple of days after launching the Tesla Model Y in India, the American EV firm is facing frustration from Indians. The internet is full of reports and news stories about the exorbitant taxes that potential buyers will need to incur while buying a Tesla car. In fact, many people have shared images of what the car costs in the U.S. vs India on social media. After being in talks with the Indian government for a couple of years, Tesla finally unveiled its first Mumbai showroom in Maker Maxity Mall in the Bandra Kurla Complex (BKC). The first EV on sale is the highest-selling EV in the world, Model Y.
Tesla Model Y Taxes
The Tesla Model Y is available in two versions – Rear-Wheel Drive and Long Range Rear-Wheel Drive. These prices are Rs 59.89 lakh and Rs 67.89 lakh, ex-showroom, respectively. For reference, the similar trim (Long Range Rear-Wheel Drive) in the USA costs $37,490 after the $7,500 tax credit. This translates to approximately Rs 32.17 lakh INR. Hence, there is a difference of around Rs 35 lakh. Therefore, the taxes of around Rs 35 lakh simply double the actual price of the car.
Remember that Tesla doesn’t have a manufacturing or assembly facility in India. As a result, it is selling cars as CBUs (Completely Built-up Units). This attracts an import tariff of 70% and a luxury tax of 30% on it. Add to this other expenses like GST, TCS, Road Tax (depending on the state), and the customers end up paying over double the actual cost. That is what’s hurting the buyers a lot. This puts it at par with the premium EV models in the country and way out of the reach of the masses. Nevertheless, it is the unfortunate reality, at least till the time Tesla starts manufacturing cars in India.
My View
Tesla has finally started selling cars in India. First of all, this is a huge moment for the country and the EV giant. Even the enthusiasts have been quite excited about this occasion. However, with the high prices, it will be interesting to see how well the consumers embrace Tesla EVs. We can’t write off Tesla just yet. It plans to expand operations to other parts of the country, starting with New Delhi. Having said that, we can’t deny the fact that if it starts manufacturing here, the prices will become extremely competitive, and we will have a real competition on our hands.
Also Read: Tesla Demonstrates World’s First Autonomous Car Delivery
