Finally, Indians can own a Tesla. However, the price is on the higher side because it is not being manufactured in India.
Here is the breakup of the price of a Tesla in India.
Tesla Model Y’s India Ex-Showroom pricing is Rs 59.89 lakh, which includes the base price, import duties, and luxury tax, which includes GST.
Base Price – Rs 30 lakh approximately
Import Duty – 70 per cent of the base price, which is Rs 19.39 lakh
GST – 28 per cent, which is luxury tax – Rs 7.75 lakh
1 July 2025
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Cess on GST – Rs 2.75 lakh
Total Ex Showroom Price - Rs 59.89 lakh
“While the India–US trade deal has raised hopes of tariff relief, the actual benefit to Tesla buyers in India may be minimal. This is because most of the Tesla vehicles currently being imported are manufactured in China, not the United States, and therefore would not qualify for duty concessions under a bilateral agreement,” says Ankit Jain, partner, Ved Jain and Associates.
Listen To Your Brain Or Heart?
“If you're a High Net-Worth Individual (HNI) making discretionary lifestyle purchases, the Tesla is symbolic, not strategic. The tax-loaded premium pays for rarity, not necessarily utility or value,” says Deepak Kumar Jain, Founder and CEO, TaxManager.in, the tax advisory and e-filing portal platform.
Tesla is considered a global benchmark in the EV space, and the venture of Elon Musk makes it even more prestigious for HNI affluent Indian buyers to buy the Tesla Model Y at such a steep price.
“Paying 100 per cent premium as tax on a Tesla EV in India does not make sense as there are much better and technologically upgraded versions of Make in India EV, which come with a reduction in taxation,” says Jain from TaxManager.in.
In fact, Tesla's Autopilot, over-the-air updates, and minimalistic interiors offer a distinctive experience that local EVs currently cannot replicate. “For individuals valuing status, exclusivity, and early adoption over price-performance, the appeal of these features is evident. In India, affluent individuals who prioritize emotion, visibility, and social signaling view the Tesla Model Y as a luxurious tech accessory worth flaunting,” says Sachin Sharma, Managing Partner, KSV Tax Consultants.
Introducing a Made-In-India Tesla could offer a more extensive price range due to 70-100 per cent of import duty on Completely Built Unit (CBU), after-sales service, and parts network, enhancing the overall ownership experience.
Prices May Reduce, But Not In the Short-Term
“Early adopters, particularly HNIs, have the opportunity to be pioneers in owning and driving this premium electric vehicle in the Indian market,” says Sharma.
Waiting makes financial and strategic sense because once Tesla is locally manufactured or assembled through partnerships, it may bring the customs duty from 100 per cent to 15 per cent approximately. “Prices can come down to the Rs 25 lakh to Rs 40 lakh range. Locally assembled models themselves become eligible for subsidies, bringing the cost down,” says Jain from TaxManager.in.
