Tesla, owned by the world’s richest man, Elon Musk, is considering a major price reduction for its cars in the country. Tesla’s popular Model Y, which currently costs around Rs 60 lakh in India, may become almost one-third cheaper in the next four to five years, according to reports. If this plan succeeds, Indian customers could save around Rs 20 lakh on this electric car. The move is part of Tesla’s strategy to grow its presence in the Indian electric vehicle (EV) market and offer more competitive prices.
According to Tesla India General Manager Sharad Agarwal, Indian buyers are likely to see a price drop of nearly Rs 20 lakh on the Model Y within the next few years. He told Reuters that Tesla began taking bookings in mid-July this year and has sold only 140 units in India so far.
Agarwal also highlighted the benefits of owning a Tesla, saying that its resale value remains strong and that home charging costs are just one-tenth the cost of petrol.
The main reason behind Tesla’s high price in India is heavy import duty. The entry-level Model Y crosses Rs 60 lakh because India imposes a 100% import tariff on cars, which Elon Musk has called the highest in the world.
In comparison, the average price of most electric vehicles sold in India is around Rs 22 lakh, making Tesla almost three times more expensive. The Model Y’s price in India is nearly 70% higher than its price in the United States.
Tesla is also struggling with wider challenges in India. The company expected that a trade agreement between India and the United States would bring down import tariffs, but those hopes faded after Trump imposed a 50% tariff on India. Another 25% tariff was added on oil imports from Russia, affecting bilateral ties further.
Shivam Verma is a journalist with over three years of experience in digital newsrooms. He currently works at NewsX, having previously worked for Firstpost and DNA India. A postgraduate diploma holder in Integrated Journalism from the Asian College of Journalism, Chennai, Shivam focuses on international affairs, diplomacy, defence, and politics. Beyond the newsroom, he is passionate about football—both playing and watching—and enjoys travelling to explore new places and cuisines.
