(MENAFN- NewsBytes) After facing several hurdles, Elon Musk-led American carmaker Tesla appears to be inching closer to launching its products on Indian shores. As per information recently shared by the central agency Vahan Sewa, Tesla India Motors and Energy has secured approval for four of its vehicle variants. The vehicles have been homologated for India but this doesn't mean launch is imminent. Here's more.
In this article
- Four unidentified Tesla cars have been homologated for roadworthiness
- Tesla reportedly in talks with Indian suppliers for critical components
- Tesla cars still subject to unsubsidized 100 percent import duty
- Import duties don't bode well for price-sensitive Indian market
- Tesla's affordable US offerings would become premium cars in India
Success Four unidentified Tesla cars have been homologated for roadworthiness
Tesla India Motors and Energy is a subsidiary of Tesla Inc. headquartered in the US. The news of successful homologation of its cars means that the vehicles in question have been certified to be roadworthy after meeting the predefined criteria. Moneycontrol reported that at this time it is unknown which four vehicle models have been certified.
Spotted testing Tesla reportedly in talks with Indian suppliers for critical components
Tesla Model 3 spotted testing in Pune Further, Tesla Model 3 and Model Y test mules have been spotted on Indian roads. So, it is reasonable to speculate that these models would be accompanied by the company's Model S sedan and Model X crossover. Additionally, The Economic Times reported that Tesla is in talks with at least three Indian suppliers for components including instrument panels, windshields, gears, power seats, and differentials.
Hurdles Tesla cars still subject to unsubsidized 100 percent import duty
However, a major barrier for Tesla still remains. The company has appealed to the Indian government to reduce taxes levied on cars being imported for driving initial sales. Indian norms levy a 100 percent import duty on electric vehicles if its CIF (cost, insurance, and freight) is worth over $40,000 and a 60 percent duty if CIF is less than $40,000.
Details Import duties don't bode well for price-sensitive Indian market
In the US, the Model 3 and Model Y are priced between $38,700 and $41,200 while the Model S and Model X are priced between $81,200 and $91,200. This would mean that Tesla's most affordable car's price would touch Rs. 57 lakh while the costliest model would be priced at Rs. 1.35 crore. Understandably, this would be a challenge in price-sensitive Indian market.
Information Tesla's affordable US offerings would become premium cars in India
High import duty and a consequently higher sticker price would be detrimental to Tesla's sales volumes and brand perception in the country. The Model 3 would become a premium electric car that only Indian customers with the deepest pockets would be able to afford.
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