What's the story Tesla is gearing up for its highly-anticipated entry into the Indian market. However, even with potential import duty reductions, Tesla's most affordable EV is likely to remain beyond the reach of the majority of Indian consumers. Even if the Indian government reduces import duties to less than 20%, Tesla's cheapest electric car could still cost between ₹35-40 lakh, as per global capital markets firm CLSA. Market impact Tesla's Model 3 pricing compared to domestic EVs Currently, Tesla's cheapest car—Model 3—costs around $35,000 (approximately ₹30.4 lakh). With reduced import duties but additional costs such as road tax and insurance, the on-road price in India would still be around $40,000 or ₹35-40 lakh. At that price, the Model 3 will 20-50% costlier than local EVs such as the Mahindra XEV 9e, Hyundai Creta Electric, and and Maruti's upcoming e-Vitara. Hence, it won't have much impact on India automakers but players like BYD will be in direct competition. Market penetration