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  • Writer's pictureDhairya Gupta

Tesla in India for Rs. 20 Lakhs? 5 Lakh Units per year?

Updated: Aug 23, 2023

As per some reports in the media, Tesla is planning to make an investment proposal to the Indian government to start manufacturing their Electric Vehicles in India. The company is discussing making a factory of Electric Vehicles in India. As per a report from the Times of India citing government sources, the capacity of the Tesla factory will be to manufacture about 5 Lakh electric vehicles per annum. According to the reports, the eccentric CEO of the company, billionaire, Elon Musk is considering India as an export base for shipping of electric cars to countries to the Indo-Pacific region.

Picture of  Tesla Model 3
Tesla Model 3: Highest Selling Tesla Model

Expected Price of the Tesla electric vehicles in India

The report mentioned that the expected price of the electric cars from Tesla in India would be around Rupees 20 lakhs, which is approximately US $24, 000. This cost is more than double of India’s cheapest electric vehicle, the MG Comet. Its price can be Rs. 5 Lakh costlier than the Tata Nexon EV, which is best-selling electric car in India.

Tesla’s plans of the previous year were stopped

The company, Tesla had planned to make entry in India with its electric cars, but its plans were stopped after the Indian government denied to reduce import taxes on its electric cars. As per the rules and regulations of the Indian government for the electric vehicles industry, our country levies about 100 % of taxes on the import of electric vehicles.

Picture of Tesla Model X
Tesla Model X

The deal between the Indian government and Elon Musk for the import of Tesla electric cars into India

At first, India was interested in the company to manufacture its electric cars locally in India. But, Tesla told the Indian government that it wanted to export its electric cars to India initially. The company said this because it could be able to analyze the strength of demand for Tesla electric cars in India.


Elon Musk with Tesla Cybertruck with smashed windows
Elon Musk at Unveiling of Tesla Cybertruck

As per a report by Reuters, with a change of plans, Tesla wanted to enter the Indian market in modified efforts. Then, the company discussed recently with the officials of the Indian government the anticipated incentives to be provided by the government for its electric cars and battery manufacturing work.

As per the local media report, the Indian Commerce and industry ministry is leading talks this time and is in hope to put together a ‘good deal’, along with maintaining a level-playing field, as the present talks include the local manufacturing plan and export plans also.

In the previous month, the Prime Minister of India, Narendra Modi had a meeting with Elon Musk, in which Modi asked the car manufacturing company, Tesla to make a ‘significant investment’ in the country.

We hope that this meeting will help bring a new revolution in the electric vehicle industry of India with the entry of Tesla electric cars into the Indian market.

Presently, the Commerce and Industry Ministry, Tesla, and Musk did not announce anything regarding the meeting outcomes. They will reveal it afterward after the final decision is made.

Which Tesla Car would you like to see in the Indian Market? About Tesla electric cars

Tesla is successfully selling a lot of electric cars in the USA. The electric cars from Tesla are the Tesla Model 3, Tesla Model S, Tesla Model X, and Tesla Model Y. A few Indian celebrities have already bought electric cars from Tesla. Mukesh Ambani owns the Tesla Model S 100 D and the Tesla Model X 100 D. Riteish Deshmukh has bought the Tesla Model X.

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