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Tesla Shocker: 85% Discount in India for Just 100 Rupees! Elon Musk’s Best Chance Yet

New Electric Vehicle Policy: 

The prospect of luxury car manufacturers like Tesla, BMW, and Audi gracing the streets of India in the coming years may sound surprising, given the current scenario. However, the Indian government, under the leadership of Prime Minister Narendra Modi, has been actively working to promote electric vehicles (EVs) in the country. As a part of this initiative, the government is in the process of formulating policies to encourage companies like Tesla to set up manufacturing units and make luxury EVs more affordable for Indian consumers.

A Greener Tomorrow: Electric Cars and Their Role

Electric vehicles are considered a crucial step towards reducing carbon emissions and mitigating the adverse effects of climate change. These vehicles run on electricity rather than conventional fossil fuels, making them more environmentally friendly and sustainable. As the world grapples with environmental concerns, many nations are focusing on promoting electric mobility, and India is no exception.

Lowering Import Duties: Making EVs More Accessible

One of the key strategies in the government’s plan to promote electric vehicles is the reduction of import duties on green cars. Currently, import duties on electric vehicles stand at a substantial 100%. The government is now taking steps to lower this rate to 15%. This significant reduction in import duties will have a ripple effect, making electric cars more affordable and encouraging their adoption by the Indian population.

Tesla’s Ambitious Entry into India

Tesla, led by visionary entrepreneur Elon Musk, had expressed its intentions to enter the Indian market in 2021. At that time, Elon Musk announced his desire to eliminate the 100% import duty on electric vehicles in India. With the government’s plan to reduce import duties to 15%, it is expected that this change will bring down the cost of Tesla cars significantly, making them more accessible to Indian consumers.

Government’s Stringent Conditions

While reducing import duties is a welcome step, the Indian government has laid out certain conditions for car manufacturers. The government expects these companies to establish manufacturing facilities in India and participate in the local market actively. To ensure compliance with these commitments, companies may also need to provide bank guarantees. Moreover, the government may demand the development of an ecosystem to support suppliers in the initial two years, with a gradual increase to 40% local sourcing within four years.

Affordable Entry-Level Electric Cars

The new policy is not only beneficial for luxury car manufacturers like Tesla but also for companies like Tata Motors and Mahindra & Mahindra, which have been actively investing in electric vehicles. Lower import duties will make electric cars more affordable for Indian consumers, opening the market for entry-level electric cars as well. With the new policy, an entry-level electric car may cost around 20 lakh rupees, making it a viable option for a broader segment of the population.

Calculating Import Duty

The government’s policy proposal suggests that vehicles entirely manufactured overseas and imported should have a minimum of 15% tax. Currently, vehicles costing more than $40,000 are subject to a 100% import duty, while others face a 70% import duty. For example, Tesla’s Model Y starts at $47,740 in the United States without taxes. Lowering import duties is expected to bring down the cost of Tesla’s cars significantly, making them more accessible to the Indian market.


The Indian government’s commitment to promoting electric vehicles and reducing import duties on EVs is a significant step towards a greener and more sustainable future. As India aligns itself with the global efforts to reduce carbon emissions, this policy not only benefits the environment but also the Indian automobile industry and consumers. With more affordable electric vehicles, the dream of seeing Tesla and other luxury cars on Indian roads may not be too far-fetched.