Model Y Starting at 97 Million Won
70% Tariff Imposed on Electric Vehicle Exports to India
Tesla, which has officially entered India, the world's third-largest automobile market, has set local sales prices at nearly twice those in China due to high tariff burdens.
According to the Hindustan Times and other sources on July 16, Tesla unveiled its showroom in Mumbai the previous day and began accepting orders for the Model Y through its website.
The price for the Model Y Rear-Wheel Drive (RWD) is set at around 6 million rupees (approximately 97 million won), and the Model Y Long Range Rear-Wheel Drive is priced at 6.8 million rupees (approximately 110 million won).
This is relatively expensive compared to the prices in countries where Tesla has production plants.
The starting price for the Model Y is $44,990 (about 62 million won) in the United States, 263,500 yuan (about 51 million won) in China, and 40,970 euros (about 74 million won) in Germany.
This is due to tariffs in India. Currently, electric vehicles exported from the United States to India are subject to a 70% tariff. This is why Elon Musk, Tesla's CEO, has considered building a production plant in India.
In April last year, CEO Musk personally visited India and was scheduled to meet Prime Minister Narendra Modi to announce plans to build a local electric vehicle plant. However, just a few days before his visit, CEO Musk abruptly canceled the trip.
This was due to expectations that tariffs on imported electric vehicles in India would be lowered as the United States and India began trade negotiations with the launch of Donald Trump's second administration.
Isabelle Fan, Tesla's regional director, explained, "We are building an electric vehicle ecosystem and investing in essential infrastructure, including charging infrastructure," adding, "Since we are starting from scratch, it will take time to cover the entire country."
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