Tesla's Model 3: This is what it could cost when launched in India
Model 3 will be Tesla's most affordable car yet and achieves 215 miles (346 km) of range per charge while starting at $35,000 or Rs 25 lakh before incentives.
US-based electric car major Tesla on Friday said that it will enter India with the recently launched Model 3. The company will begin global rollout of the vehicle in late 2017. The automaker had last night unveiled the car in the US and announced orders at a starting price of $35,000 (approximately Rs 23.2 lakh), limiting it two units per person. Tesla, however, didn't elaborate on the India launch date.
"Adding several more countries to Model 3 order page tonight. Check for details, but will include India, Brazil, SA, SK, NZ, Singapore & Ireland," Tesla Chief Executive Elon Musk tweeted. The company said the production of Model 3 is scheduled to begin in late 2017.
Model 3 will be Tesla's most affordable car yet and achieves 215 miles (346 km) of range per charge while starting at $35,000 before incentives.
However, India imposes 60% customs duty on import of completely-built electric cars priced less than $40,000. If the electric car is assembled in India, the customs duty on the completely knocked down units in 10%.
Since it is priced below $40,000 the 60%, custom duty would take the price of the car to Rs 37.18 lakh.
However, the government last year had launched FAME India (Faster Adoption and Manufacturing of Hybrid and Electric vehicles), an initiative that promised to provide Rs 795 crore support till 2020 for manufacturing sale of electric and hybrid vehicles.
Under the scheme incentives for four-wheeler electric cars range from Rs 13,000 to Rs 1.38 lakh, while light commercial vehicles incentives range from Rs 17,000 to Rs 1.87 lakh.
The scheme depends on the technology of the battery operated vehicles. Better technology and efficiency would lead to higher incentives on cars.
This could see the Tesla's Model 3 get a higher incentive closer to the higher part of the range at Rs 1.38 lakh considering it uses the latest in electric car technology and achieves a higher range of 346 km. In comparison, Mahindra Reva plans to launch a new all-electric version of its Verito sedan which is expected to achieve a 100 km range.
The incentive would bring the price a little lower. However, if the 60% custom duty remains it would still be much higher.
Apart from this, last week the government planned to make India a nation with 100% electric vehicles and is already considering making electric cars available for zero down payment.
At a programme organised by CII Young India, Power Minister Piyush Goyal said India can become the first nation where 100% vehicles will be run on electricity, adding the government is trying to arrange funds for such an initiative.
Goyal said that discussions would be held in the first week of April on whether India can become a nation with 100% electricity run vehicles by 2030.
If the government however, provides the support for electric cars through its incentives the price of the Tesla's Model 3 could come down much lower than it's original price.
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.