Tesla set to inaugurate its second Indian retail outlet on August 11th
Tesla Expands Presence in India with Second Showroom in New Delhi
Tesla, the electric vehicle (EV) pioneer, has marked another milestone in its Indian journey by announcing the opening of its second showroom in the country. Located in New Delhi's stylish Aerocity district, the new showroom is scheduled to open on August 11 at Worldmark 3.
The Aerocity showroom will provide an opportunity for customers to engage with Tesla's latest technology up close and explore the features of the vehicles in person. This follows the successful launch of Tesla's operations in India on July 15, which was marked by the opening of the Mumbai showroom at the Maker Maxity Mall at Bandra Kurla Complex.
The current Tesla model options available in India include the Tesla Model 3 and the Tesla Model Y. The Model Y, which was the first to launch, is now available in two variants: a standard Rear-Wheel Drive (RWD) version and a Long Range RWD variant. These models offer WLTP ranges up to 622 km, starting at a price around ₹59.89 lakh (~$71,000). The Model 3, while not yet launched, is expected to follow soon, with future plans for Model S and Model X launches.
Several factors influence Tesla’s pricing in India compared to other countries. Import taxes and duties, local manufacturing prospects, right-hand drive adaptation, additional features costs, and market positioning are some of the key factors. Tesla vehicles are imported as Completely Built Units (CBUs) and attract high import duties of about 70% in India, significantly increasing prices. For example, the Model Y that costs around $44,990 in the U.S. is priced nearly double in India (~$71,000), while it costs less in countries like China and Germany where local production or lower tariffs exist.
Tesla initially imports its vehicles but may consider local manufacturing in India in the future. Local production would reduce costs substantially and allow more competitive pricing against other EVs, which could increase volume sales. The company's U.S. factories do not currently produce right-hand drive vehicles used in India, so Tesla imports from China where such variants are made, adding logistical complexity and cost. Optional add-ons like Tesla’s Full Self-Driving (FSD) capability are extra, further increasing the buyer's cost. Due to the high prices determined mainly by import duties, Tesla is positioned in the luxury segment in India, competing with premium brands rather than volume market EVs, limiting initial sales volume projections.
In summary, Tesla offers Model 3 and Model Y in India, priced much higher than in other countries primarily because of import duties and lack of local production. Future price reductions depend on trade agreements and potential local manufacturing facilities. The new Aerocity showroom in New Delhi will offer customers an immersive experience and further boost Tesla's presence in India.
[1] Tesla launches operations in India [2] Tesla may consider local manufacturing in India [3] Tesla Model 3 and Model Y now available in India [4] Tesla's pricing in India explained [5] Tesla's future plans for India
[1] The expansion of Tesla's presence in India continues with the announcement of a second showroom, located in New Delhi's Aerocity district.
[2] As Tesla continues to explore the Indian market, potential plans for local manufacturing could help reduce the cost of vehicles and make them more competitive against other EVs.
[3] The latest Tesla models available in India are the Model 3 and the Model Y, with the Model Y now available in two variants.
[4] The pricing of Tesla vehicles in India is influenced by factors such as import taxes, right-hand drive adaptation, and market positioning, with the models being imported as Completely Built Units (CBUs) and attracting high import duties.
[5] Future plans for Tesla in India include the launch of the Model S and Model X, as well as potential local manufacturing facilities to help reduce costs and increase sales volume in the country.
