Many people were purportedly delighted at the launch of the Model Y in India by Tesla yesterday at their gracefully white showroom inaugurated at the Maker Maxity Mall in BKC, Mumbai yesterday. The company showcased a single product, the Model Y at a starting price of INR 59.89 lakh, with the long range (claimed range 622 kms) coming in at 67.89 lakhs. But is it a matter of ‘too little, too late’?
Remember that in 2017, Tesla had taken a deposit of INR 70,000 (then US$1,000) for its Model 3, which it later refunded to all those who had paid the deposit as the car maker’s plans got delayed. It’s finally here, but at the price point at which it is competing, there are many competitors and some are actually cheaper by more than INR 10 lakhs, case in point being the BMW iX1 LWB. Now all Tesla fans may be claiming blue bloody murder, but do remember that all prestige manufacturers in India including Mercedes-Benz, Audi and Porsche, besides Kia and Hyundai all have models in this price range. Tesla’s biggest challenger in the US, BYD, is nipping at its heels in India as well.
Does all this make Tesla’s Model Y a late comer to the party? Well, the Tesla certainly has a lot of fans in India but its competitors are no pushover. Do keep in mind that the interiors of all Teslas are Spartan compared to its luxurious German competitors, all of whom offer better comfort and amenities for the money. In fact, even Apple CarPlay and AndroidAuto do not work natively on Teslas, and India does not yet have a network of Superchargers, something that Tesla is trying hard to work at. Also, its advanced driver suites may not work too well in India, given the fact that not all our roads are well marked and calibrated. Autonomous driving is a pipe dream in India. Even Advanced Driver Assistance Systems (ADAS) does not fully work in India. In this scenario, the Tesla’s capabilities get severely limited.
In India, we are paying double for the car but then that is something we cannot do much about. Our duty structure makes it prohibitively expensive to import cars as Completely Built-up Units (CBUs). Our Hon’ble Prime Minister was trying to get Elon Musk to set up a factory in India, which he did not. Naturally, he cannot take advantage of the reduced taxes on Made in India EVs, and has to pay the full duty. A single model strategy is also detrimental. The Model 3 and the Model X should also be sold in India and these will compete with the big boys.
In conclusion, yes Tesla is here but they will need a proper marketing strategy in India, or they will be relegated to just another EV company in India, once the initial euphoria dies down.
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