Tesla is reportedly making significant strides in its Indian market strategy, aiming to introduce a new electric vehicle (EV) priced at approximately Rs 20 lakh ($24,000). This move by Tesla, known for its high-end electric cars, signals a strategic shift towards affordability, potentially reshaping the Indian EV landscape.
The company is actively exploring options for local manufacturing, and according to a Reuters report, a Tesla representative is scheduled to meet with India’s commerce minister, Piyush Goyal, this month to discuss plans for setting up a factory in India. This factory would serve the dual purpose of meeting the domestic demand for budget-friendly EVs and acting as an export hub.
The pricing of this upcoming Tesla offering is a game-changer, positioning it 25 percent cheaper than the company’s current lowest-priced model, the Model 3 sedan, which is priced at just over $32,200 (Rs 26.32 lakh) in China.
This development comes after Elon Musk, Tesla’s CEO, met with Prime Minister Narendra Modi in June, expressing the company’s intentions to make a substantial investment in India. It is also a response to previous challenges Tesla faced in reducing import taxes on EVs due to government officials’ demands for commitments to local manufacturing.
The Indian EV market is still in its early stages, representing less than 2 percent of total vehicle sales in the country. However, Tesla’s entry into the sub-20 lakh price segment is expected to stimulate demand for EVs and contribute to the growth of electric mobility in India.
