Tesla starts the sale in India - but at high prices

Tesla starts the sale in India - but at high prices

Tesla started selling cars in India, the most populous country in the world - at a high price. The company opened its first showroom in Mumbai on Tuesday. In view of the declining sales figures in the USA and the political involvement of CEO Elon Musk, Tesla urgently needs a sales boost. The entry into a new market with undeveloped buyers could help.

prices for Tesla vehicles in India

The Tesla-Website lists the price for a model Y at 61.07.190 rupien. For comparison: The same car is stated on the website for US buyers with around $ 45,000 before the state tax bonus of $ 7,500 for electric vehicles (EV) is deducted, which would therefore reduce the price to $ 37,500. (This tax bonus expires at the end of September.)

challenges from Indian customs tariffs

Tesla has long been in the desire to sell in India, but the Indian tariffs on foreign cars that can more than double the costs for vehicles there are a great obstacle. According to the World organization for retail and Tesla representatives this was a real barrier.

"We are working to get to India. India is a very sought -after market," said Teslas CFO Vaibhav Taneja during a conference call with investors in April. "It will be a great market because India has a large middle class." However, the tariffs are "a little in the way with which we try to deal with."

India as an important car market

India is the third largest automotive market behind China and the United States. The absence in India has had a negative impact on Teslas Global Sales, which is currently the largest sales return Experience, and this in view of a growing competition and a setback in some markets through the political activities of Elon Musk.

Almost half of Tesla's turnover comes from the USA, while a little more than 20% come from China. Another 30% come from other countries.

competition and future plans

Tesla is not only faced with the competition from established automobile manufacturers who have increased their range of electric vehicles, but also the growing competition from Chinese EV manufacturers. In fact, Tesla could lose its titles as the largest electric vehicle manufacturer in the world to the Chinese automobile manufacturer BYD, although BYD cannot sell in the United States.

Tesla representatives have declared that they have the desire to build a work in India, but currently the existing production facilities in the USA, China and Germany have more capacity than the demand for their vehicles. The plans for another work in Mexico are currently on ice.