A piece of good news for auto enthusiasts as Tesla’s car will be “affordable” when it is launched in India.
it will cost Rs 35 lakh here, as Union Minister for Road Transport & Highways, Nitin Gadkari, said on Friday.
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Looks Like A Mutual Interest
Basically, this remark is an indication of the Indian government and the Elon Musk-run firm’s mutual interest in having Tesla cruise into the world’s fifth-largest automobile market which is also price sensitive.
Further, Gadkari said, Tesla has been in talks with the government and has been invited to make its cars in India, while speaking at the Game Changers: Climate Action session at the India Today Conclave 2021.
The remarks come 10 months after he announced the entry of the world’s most valuable brand into India.
Pricing For Tesla Cars
So far, there has been no formal announcement by the company about its plans in India.
Yet, it is widely anticipated that the car manufacturer will bring the more affordable Tesla Model 3 with a starting price range of Rs 55 lakh to Rs 60 lakh.
Tesla – Made In India
In his communication to the Tesla officials, he asked to not launch a “made in China car” to India.
Further adding, “I asked Tesla officials not to make the car in China and sell it in India. It is something I had in my mind and I told them,”.
He said, “Come to India, make it here, sell it here, and export from here. The government will provide you all the help and support you need,”.
“There is a signalling going on between the government and Tesla.
It appears that there is a mutual interest,” said Ravi Bhatia, president and director at JATO Dynamics India, an automotive business intelligence company while talking about the remarks by the minister.
Importance Of Pricing In Indian Market
It seems that Tesla has studied the Indian market and is well aware that to garner reasonable volumes in the country, its cars have to be priced competitively.
According to Bhatia, the market for cars in India priced above Rs 50 lakh is very small.
Further adding that it is also the first time that a senior government representative has made the anti-China sentiment public.
So far, Tesla has been lobbying with the Indian government to reduce the duty on imported cars.
But, there has been no official announcement from the government on the matter yet.
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