Tesla Model 3 Pricing in India: Expected Cost After Import Duty Revisions

by gauravsinghigc

Tags : Tesla Model 3 India price, Tesla import duty India, electric vehicles in India, Tesla price reduction, Tesla India launch, EV market India, Elon Musk Tesla India, Tesla Model 3 cost in India, government EV policy | Published at : 23 Feb 2025 05:10 AM | Author : Gaurav Singh (gauravsinghigc)

The Tesla Model 3 is expected to enter the Indian market with an estimated price of ₹35-40 lakh. Despite the government’s revised import duty on electric vehicles, the cost remains higher than anticipated. Industry experts discuss the impact of Tesla’s pricing strategy on the growing EV market in India.

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🚗 Tesla Model 3 to Cost ₹35-40 Lakh in India Even with Reduced Import Duty

With Tesla restarting its India operations and posting multiple job openings, speculation about its official entry into the Indian market has intensified. The development comes shortly after Prime Minister Narendra Modi met Elon Musk in the US.

📉 Tesla Model 3 Pricing in India

Reports suggest that even with a 15-20% reduced import duty, the on-road price of the Tesla Model 3 will be between ₹35 lakh and ₹40 lakh. Currently, the same model is priced at $35,000 in the US, which roughly converts to ₹30.4 lakh. However, due to import duties, road tax, and insurance costs, the final price in India will be higher.

🚙 Expected starting price: ₹35 lakh
🏦 Import duty impact: Below 20% expected
🛣️ On-road price: ₹35-40 lakh (including taxes & insurance)

⚡ Will Tesla Model 3 Disrupt the Indian EV Market?

Despite the excitement, analysts predict that Tesla may not dominate the Indian EV sector due to high pricing compared to domestic brands like:

🚘 Mahindra XEV 9e
🚙 Hyundai Creta Electric
🚗 Maruti Suzuki e-Vitara

Experts claim that a price difference of 20-50% higher than local competitors may limit Tesla’s influence in India’s EV space.

🏬 Tesla Showrooms Coming to Delhi & Mumbai

Tesla is planning to open showrooms in Delhi and Mumbai in the coming months as part of its India expansion. The EV giant has officially started hiring, with job listings posted for 13 different positions on LinkedIn as of February 18.

🏭 Tesla Needs ₹4,150 Crore Investment for Lower Import Duty

To make Tesla cars more affordable in India, the company must set up a local manufacturing facility. According to reports:

📌 Requirement	📈 Details
Investment Required	₹4,150 crore+
Import Duty Benefit	15% on up to 8,000 units per year
Condition	Local production setup

🔍 Tesla’s Future in India

The key to Tesla’s success in India depends on whether it commits to large-scale investment in local manufacturing. Without it, even with lower import duties, Tesla cars may remain out of reach for most Indian buyers.