By Bharat Global Time | July 17, 2025
The Tesla Model Y – hailed as the world’s bestselling electric SUV – costs around $44,000 (₹36.7 lakhs) in the United States. But in India, early estimates suggest it could cost ₹70–80 lakhs, nearly double the original price.
Why such a steep jump? The answer lies in a web of taxes, import duties, and policy roadblocks that make premium EVs almost unaffordable in India.
Model Y Price Breakdown: US vs. India
| Component | USA | India (Estimated) |
|---|---|---|
| Base Price | $44,000 (~₹36.7L) | ₹36.7L |
| Import Duties & GST | N/A | + ₹30–35L (≈100% total tax) |
| Registration & Insurance | Lower | Higher for luxury vehicles |
| Final On-Road Price | ₹36–40L | ₹70–80L |
1. High Import Duties (Up to 100%)
India classifies fully built imported EVs (CBUs) as luxury items:
- For cars above $40,000: Customs duty = 100%
- Even if Tesla sets up an assembly unit later, the completely built imports still bear this massive burden.
Result: A ₹40 lakh Tesla becomes ₹80 lakh before it even hits the road.
2. GST on EVs — Still Not Enough
While the GST on EVs is just 5%, it doesn’t help much if the base cost is already doubled due to import duty.
Also, insurance, luxury tax (in some states), and high registration charges further inflate the final price.
3. Infrastructure Cost
Tesla’s cost of entry into India includes:
- Setting up charging networks
- Hiring local teams
- Creating service hubs and parts supply chains
These overheads indirectly add to the cost per vehicle — especially when initial sales volume is low.
4. Policy Tug-of-War with the Indian Government
Tesla has long asked for lower import duties until it sets up a factory. India insisted on local manufacturing first.
This chicken-and-egg deadlock stalled Tesla’s entry for years, making any model that finally arrives here more of a diplomatic statement than a commercial product.
5. No Localization Yet
Tesla’s cars in India will be fully imported, meaning:
- No local suppliers
- No cost-saving due to “Make in India”
- And no price advantage from domestic production
Until Tesla sets up local assembly or full manufacturing, prices will remain high.
Will Prices Drop in the Future?
Yes — but only if:
- Tesla sets up a GigaFactory or assembly line in India
- The government offers import duty concessions for EV-only brands
- Local vendors are onboarded to reduce parts and logistics cost
The India EV Policy 2025, which offers conditional tariff cuts for companies investing in local production, may finally lure Tesla to build and sell at competitive prices.
Final Word
For now, the Tesla Model Y in India is not for the masses, but for the elite few who want to own a status symbol — not just an EV.
But as India ramps up its EV infrastructure and Tesla inches closer to local manufacturing, affordable Teslas may no longer be a distant dream.
Follow Bharat Global Time for the latest updates on EV policy, Tesla’s India plans, and global auto trends.
Subscribe on YouTube and Telegram for real-time insights.
