Tesla's First Two Car Models For India: What They Are And What They'll Be Priced At

Tesla is set to start its India operations soon. With the import duties lowered and showrooms being set up, it is now just a matter of time before we see Elon Musk's famed electric vehicles on our roads. Though details of the actual product plans and strategies are limited, we know that the Model 3 and Model Y will be two of the first Teslas to arrive. The homologation processes for both these have already been initiated. How much could these cost in India? Let's do some quick math.

Tesla Model 3: How Much Could It Cost In India?

The Model 3 is Tesla's entry-level model and a sedan. In the U.S market, there are three variants of the car available: Long Range Rear Wheel Drive (RWD), Long Range All Wheel Drive (AWD) and Performance. It looks like just the RWD and Long Range AWD will be launched in India. Initially, Model 3 and Model Y will both be brought as CBUs. A 2% freight charge will apply to each unit shipped.

Both these variants have already been spotted testing at various locations in India. The Long Range RWD variant has a factory price of 29,990 USD or roughly 25.94 lakh rupees (1 U.S Dollar= Rs 86.51). The freight charge would be $599.8 (Rs 51,889).

The Trump administration has been pushing for completely duty-free imports to India. It is unlikely that our government will yield to this. However, the Indian government has reportedly decided to lower the import duty slabs significantly to facilitate a smooth market entry for Tesla. Most reports suggest that the revision will bring import duties down to 15%.

Donald Trump in February this year, announced his intention to impose 25% auto tariffs. These would apply to imports from India as well. The Indian government could impose reciprocal tariffs on U.S goods, in the upcoming time. This could mean that the import duty could be around 25% as well. Since there is just limited clarity about the actual rate, let's work out the possible prices in both cases- with the 15% slab and the 25% slab.

Circling back to the model 3, a 15% import duty will amount to $4,498 (3.89 lakh rupees). The landed price of a Tesla Model 3 would be $ 35,087 or 30.35 lakh rupees. The ex-showroom price of Tesla's India lineup could thus start at Rs 30.35 lakh.

If the import duty is 25%, $7,497 (6.48 lakh) will be levied from each unit of the Model 3 RWD. This would make the landed price $38,087 or 32.94 lakh.

The Long Range AWD variant of Model 3 has a base price of $39,990. Under the 15% slab, the tax on this will be $5998.5 (Rs 5,18,928) and an additional freight cost of 2% ( $799.8) will also apply. The landed price could thus be $46788.3 or 40.47 lakh. If the import duty is 25%, the landed price could rise to $50,787.3 or 43.93 lakh.

Tesla Model Y: How Much Could It Cost?

The Model Y is a crossover and will sit above the Model 3 in Tesla India's portfolio. The new model Y has a base price of $52,490 in the US. This translates to roughly 45.4 lakh Indian rupees. When introduced in India, the landed price could be $61412.5 or Rs 53.12 lakh even with 15% import duty.

With the higher slab, the ex-showroom price of a Tesla Model Y in India could go up to $66,661.5 or 57.61 lakh.