Tesla Model 3 spied testing in India under camouflage

Tesla will soon officially launch its first product – the Model 3 in India. While Tesla has already put together a team in India and has registered its office in Bengaluru, Karnataka, the USA-based manufacturer is waiting for the Indian government’s decision to cut duties on the imported electric cars in India. Tesla started testing the Model 3 in India a few weeks ago and a new video shows the vehicle under heavy camouflage testing on the roads.


View this post on Instagram


A post shared by (@indiantorque)

Indiantorque has put a video on their Instagram account showing the Tesla Model3 testing on the public roads. The exact location of the video remains unknown while a similarly camouflaged Tesla Model 3 was spotted in Pune, Maharashtra last month.

While Tesla is yet to announce its first model officially for the Indian market, multiple spotting of the camouflaged Model 3 indicates that the most affordable car from the Tesla portfolio will become the brand’s first launch for the Indian market. Tesla is likely to launch its first model by early 2022.

Tesla Model 3 spied testing in India under camouflage

All the Tesla models in India will be imported as Completly Built Units or CBU and that is why it will attract massive import taxes and duties. The entry-level Model 3 is likely to get a price tag of around Rs 60 lakh, ex-showroom. It will become the most expensive electric sedan in India on its launch.

A few years ago Tesla started accepting bookings for the Model 3 in India and business jargon like Vijay Shekhar Sharma were one of the first few ones to pay a $1,000 booking amount and book the vehicle. However, Tesla decided to defer the launch in India later. With the new move, Tesla is likely to accept fresh bookings from the Indian market.

The government may reduce import duty

Tesla and other manufacturers have urged the government to reduce import duties. The Indian government is currently looking into options to reduce the import duties on electric vehicles, which may cause the prices to drop significantly.

However, if the duties are not reduced, the first product from Tesla is likely to have a price tag of around Rs 60 lakh. Since the import taxes are very high in India and Tesla will launch the car as CBU,  it will command a high price tag. Tesla has set up a Gigafactory in China and the products are likely to be imported from there. If Tesla ever builds a manufacturing facility in India, the price of the vehicles may come down to Rs 30 lakh but that might take years to happen.