Tesla Model Y might be brand's first car in India
US automaker Tesla is gearing up to bring some of its models to India next year, starting with the Model Y crossover, Moneycontrol has reported. The Model Y is a mid-sized electric crossover SUV that was introduced in 2020. It is built on the platform underpinning the Model 3 sedan and offers a more affordable alternative to the larger Model X.
Model Y pricing and import details
Although the Model Y currently costs around Rs. 45 lakh in Germany, Indian buyers can expect a higher price tag due to import duties and taxes. Tesla has been advised to avoid sourcing cars for India from China and will instead receive a few batches from its German Gigafactory. An advisor to Tesla mentioned that geopolitical tensions between India and China have led to this decision.
Tesla seeking customs duty cut
Tesla is reportedly seeking a customs duty reduction for importing electric vehicles as completely built units (CBUs) from Germany. The Indian government seems open to the idea. Tesla has invested €5 billion in its first European Gigafactory in Brandenburg, Germany, which produces the Model Y crossover and aims to increase production to one million units per year.
Potential manufacturing plant in India
India is close to finalizing an agreement with Tesla that would allow the company to import EVs at a lower duty and set up a manufacturing plant within 2025. Maharashtra, Gujarat, and Tamil Nadu are being considered for Tesla's upcoming factory due to their well-developed infrastructure. Tesla plans to initially invest around $2 billion in a new facility in India and purchase automobile components worth up to $15 billion from the country.
