Tesla EVs In India At Rs 21 lakh: Media Reports
Tesla has once again become a topic of discussion on the internet. In the last couple of days, we have seen several developments happening around this American EV brand. Prime Minister Narendra Modi met Elon Musk during his recent US visit, Tesla published job openings for their dealerships in Delhi and Mumbai, and we also have reports about Tesla bringing an affordable electric vehicle to India. Will Tesla launch an affordable EV at ₹21 lakh in India? Let’s find out.
21 Lakh Tesla
Before we determine whether Tesla will launch an affordable EV in India, let’s examine the reasons why many media publications are speculating about such a move. Tesla is one of the biggest electric car manufacturers in the world. Due to import duties and taxes, Tesla cars will not be cheap when they are launched in India.
While the government is working on regulations, Tesla is still expected to remain an expensive car. Tesla initially had plans to launch an affordable EV in developing markets to attract buyers’ attention. In the last year, the EV segment has grown in India, and the number of players has also increased. To compete with competitors like BYD, Tesla will need to introduce an affordable EV.
Tesla, as we know, was working on a $25,000 EV. Reports called it the Model 2, which would have been the most affordable Tesla to date. There were also reports that Tesla was considering setting up a manufacturing facility in India. The $25,000 Tesla, when converted to INR, costs around ₹21 lakh. Tesla would only be able to offer an EV in India at this price if they established a manufacturing facility.
Will There Be a ₹21 Lakh Tesla?
The answer to that, at the moment, is no. As mentioned above, all the reports available online are based on speculation and publicly available information. As per recent developments, it does not appear that Tesla will introduce a ₹21 lakh Tesla in India or any other market.
They have, in fact, dropped this project. Elon Musk has axed the affordable EV project, as he believes introducing such a model is pointless. Tesla is known for offering autonomous features in its cars, and the basic or affordable model would lack many of these features. Tesla has stopped working on this project and is currently focusing on its fully autonomous Robotaxi.
If Tesla is not launching the Model 2 in India, the next most affordable model from Tesla is the Model 3. However, that will not be a cheap EV and will not be launched at ₹21 lakh.
Another reason we believe Tesla will not introduce an affordable EV in the Indian market is that they currently do not have a manufacturing facility in India. While Tesla is already looking for land and local partners for manufacturing, we have come across reports indicating that US President Donald Trump has expressed concerns over this decision. He has stated that if Tesla sets up a factory in India to reduce duties, it would be “very unfair.”
This suggests that the US is not entirely supportive of Tesla’s decision, and we will have to see whether Tesla actually establishes a facility in India to manufacture EVs not just for the Indian market but for international markets as well.
We feel, Trump made such a remark as Tesla would be able to make EVs at a larger scale and at cheaper price if they set up a facility in India as labour here is cheaper than many developed countries. This would affect the economy of countries like the US fears that Tesla might shift their operations completely to India for better profits.
To conclude, Tesla does not have plans for a ₹21 lakh EV in the Indian market at the moment. There is a possibility that they might consider it in the future, but not at the moment.