Is Mahindra a threat from Tesla’s entry in India? Brokerage firm cleared

Tesla Price in India: The shares of Mahindra & Mahindra have declined by about 17 percent in the last two weeks amidst the rapid speculation of Entry in Tesla’s Indian markets.

On this, the CLSA analyst has said in its report, even if we assume that Tesla launches an on -role model worth less than Rs 25 lakh in India and gets its share in the market. Nevertheless, we believe that its price has already been decided by Mahindra & Mahindra’s recently done de-concert. We do not think that Tesla’s arrival will have any significant impact on Maruti Suzuki, Hyundai Motors India or Tata Motors.

Tesla’s cars will come in the premium segment

Amid reports of Tesla’s entry in India, brokerage firm CLSA has argued that the price of Tesla’s cars, import duty and consumers’ choice will greatly limit the company’s influence on the country’s auto industry. Due to the high price of Tesla, its cars fall in the premium segment, making it out of the reach of most Indian consumers. CLSA said, cars in India are sold on an average of about $ 14,000, while Tesla’s cheapest model costs around $ 35,000.

Due to this, the price of Tesla will be higher

The report said, even if import duty is cut, Tesla’s on-road price in India will be higher than other electric vehicles (EVs). There will also be a lot of problems due to India’s tariff structure. Currently, cars priced more than $ 40,000 have a tariff at a rate of about 110 percent, while vehicles priced lower than 60 percent tariffs. Even if the government also taxes up to 15-20 percent of it, then the price of Tesla will be higher than the EV cars made in the country.

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How much will Tesla’s cars cost in India? The cheapest model is also out of reach of common man