Tesla is coming sooner than you expected and its coming with Autopilot!

Tesla is making serious moves towards entering the Indian market, with recent reports indicating that the company has begun hiring in the country. A key development in this process was the meeting between Tesla CEO Elon Musk and the Prime Minister of India, sparking speculation about Tesla’s upcoming plans.

Tesla Model 3 Price in India: What to Expect

According to a report by CLSA, Tesla’s entry-level Model 3 is expected to cost between Rs. 35-40 lakh in India after factoring in the revised import duties, road tax, and insurance. Although the Indian government is considering reducing import duties to 15-20%, the final price of the Model 3 will still be significantly higher than locally manufactured EVs like the Mahindra XEV.9e, Hyundai Creta Electric, and Maruti Suzuki e-Vitara.

Tesla’s Model 3, priced at around $35,000 (₹30.4 lakh) in the United States, will see a price hike due to import tariffs, making it less competitive in India’s price-sensitive market. To make the Model 3 more accessible, Tesla will need to explore local manufacturing, a strategy that could significantly lower costs.

Tesla’s Manufacturing Strategy for India

The Indian government’s EV policy offers an incentive for automakers investing over Rs. 4,150 crore in local production. This policy allows up to 8,000 imported units per year with reduced import duties, encouraging global brands to set up manufacturing bases in India. Establishing local production would not only reduce Tesla’s costs but also make its EVs more competitive.

A comparison by CLSA highlights a similar pricing challenge faced by Harley-Davidson in the motorcycle segment. The Harley-Davidson X440, priced about 20% higher than the Royal Enfield Classic 350, sells only around 1,500 units per month, while the Classic 350 records sales of 28,000 units. This trend suggests that high pricing can limit sales volume in India, making local production crucial for Tesla’s success.

Tesla Model 3: Performance, Features, and Safety

The Tesla Model 3 is offered in three variants: Rear-Wheel Drive (RWD), Long Range All-Wheel Drive (AWD), and Performance.

• RWD Variant: Equipped with a 60kWh lithium iron phosphate battery, producing 279 BHP, 0-100 kmph in 6.1 seconds, and a WLTP-estimated range of 513 km.
• Long Range AWD: Features a 79kWh lithium nickel manganese cobalt battery, generating 491 BHP, with 0-100 kmph in 4.4 seconds and a range of 629 km.
• Performance Model: Also powered by a 79kWh battery, delivers 618 BHP, achieving 0-100 kmph in just 3.1 seconds with a range of 528 km.

The 2025 Model 3 boasts an updated design, improved aerodynamics, and refreshed headlights. Inside, it features a 15.4-inch touchscreen for infotainment, an 8.0-inch rear touchscreen for climate and entertainment controls, ventilated front seats, ambient lighting, and a panoramic glass roof.

Tesla’s Autopilot system comes as standard, offering features like adaptive cruise control, lane-keeping assistance, and autonomous emergency braking. Additional upgrades, including Enhanced Autopilot and Full Self-Driving Capability, provide advanced functionalities like Navigate on Autopilot, Auto Lane Change, Autopark, and Traffic Light Recognition.

Tesla’s India Operations: Key Markets and Expansion Plans

Despite pricing concerns, Tesla is actively preparing for its Indian market debut. The company has begun hiring for key roles, indicating an imminent launch. Initial operations are expected to be based in Delhi and Mumbai, two major automotive hubs that will play a key role in Tesla’s expansion strategy.

Final Thoughts

While Tesla’s entry into India is highly anticipated, its success will depend on pricing and local manufacturing. Even with lower import duties, the Model 3 remains a premium offering compared to locally produced EVs. Establishing a production facility in India could help Tesla achieve competitive pricing, ensuring greater market penetration. The coming months will be crucial in determining whether Tesla can position itself as a mainstream EV player in India.