Tesla coming to India?

Electric car maker Tesla is planning to enter the Indian market with a new car. The company is working on a 4-door sedan called the Model 3, which is expected to be priced at half the amount of the Model S, its existing model. The company has set a target price for the Model 3 in the range of $ 30,000 - $ 40,000 (approximately Rs 18-24 lakh). The Tesla Model S, carries a price tag of over $ 100,000 (approximately Rs. 61 lakh).

However, India's extremely high rate of import duty is a major hurdle in the company's plans. Tesla will look towards the Government of India for support in this respect. The company is planning to hold talks with the government for rationalising import duties. It has also identified India as a market to have a facility for local assembly.

Electric vehicles have had limited success in India. Apart from the lack of charging infrastructure and limited range, the high prices of these cars is a major deterrent for potential buyers. Unless the government offers subsidies on electric vehicles, there is not much chance that they will be accepted by the people.

The government on its part, has plans to start the National Electric Mobility Mission Plan (NEMMP), a scheme under which it will offer subsidies on electric vehicles. If the scheme is implemented, the future could hold some promise for electric vehicles.

Source: Economic Times