TESLA COMES TO TOWN

The US carmaker launches its premium Model Y, but with high import duties and a nascent EV market, the real challenge lies in building scale

- M.G. ARUN

After years of speculation, US electric carmaker Tesla Inc., led by billionaire entrepreneur Elon Musk, has finally driven into India with its bestselling Model Y. The electric vehicle (EV) will be available in two variants—the Rear-Wheel Drive (RWD), priced at Rs 59.89 lakh, and the Long Range RWD, with a price tag of Rs 67.89 lakh. Tesla's first showroom has opened in Mumbai's Bandra Kurla Complex, and it is likely to announce more of these in a few other cities, with Delhi being a distinct possibility.

Both models will be imported into India as fully built-up units, likely from Tesla's Gigafactory in Shanghai, which explains the steep price tag. The Model Y will compete in the luxury EV segment against established multinational carmakers such as Mercedes-Benz, BMW, Volvo and Audi, as well as top-end EV models from Hyundai, Kia and BYD (see Tesla's Rivals in India). Mercedes-Benz currently offers eight EV models in India, priced between Rs 67.20 lakh and Rs 3 crore. BMW has five models ranging from Rs 49 lakh to Rs 2.5 crore, while Audi offers four, priced between Rs 1.15 crore and Rs 2.05 crore. These rivals not only offer strong electric performance with luxury features, they are also backed by established dealership networks, accessible service centres and reliable after-sales support. The overall luxury car segment in India sees annual sales of 40,000-50,000 units, accounting for just 1 per cent of the more than four million passenger cars sold each year. Most luxury EV manufacturers do not disclose their sales figures in India.