iNDICA NEWS BUREAU-
Tesla will need to localize its manufacturing in India to scale its operations in the growing electric vehicle (EV) market, according to global brokerage CLSA.
To make its vehicles competitive in India, the US-based automaker will need to price them in the Rs 25 lakh-Rs 30 lakh range.
CLSA’s report suggests that even with reduced import duties of under 20%, Tesla’s current portfolio would still need local manufacturing to bring the price down to a more affordable range. With the current import duties on EVs being as high as 100%, Tesla cars in India are currently priced at Rs 35-40 lakh, making them inaccessible to the average Indian consumer.
CLSA highlights that the domestic EV market is still evolving, with EV penetration at just 2.4%, offering significant growth opportunities for both domestic players like Maruti Suzuki, Hyundai, and Tata Motors, and international entrants like Tesla.
However, Tesla’s pricing strategy would have to be competitive against domestic EVs like Mahindra XEV 9e, e-Creta, and e-Vitara, to avoid undercutting existing models in the market.
Experts suggest that Tesla can only bring down the price of its entry-level Model 3 to around Rs 21.6 lakh if it manufactures locally, specifically by producing battery components and implementing a strong EV supply chain. India’s government, through new policies, has already started offering import duty relief and incentives for local manufacturing, which could further ease Tesla’s entry into the Indian market.
