Business News: Elon Musk, the richest man in the world, has finally established a presence in India with his company, Tesla. In addition to launching its well-known electric vehicle, the Model Y, in India, Tesla established its first dealership in Mumbai. However, the cost of this car has shocked many, and they are now expressing their anger on social media. The high tax on Tesla vehicles in India is the cause, as a car that used to cost Rs 27 lakh now costs Rs 60 lakh.
Why such expensive cars?
Two versions of the Model Y have been introduced by Tesla. One model costs Rs 59.89 lakh, while the other costs Rs 67.89 lakh, according to Tesla's Indian website. After hearing these prices, a lot of people are now confused because, in America, this car would cost roughly Rs 33 lakh with taxes. So why does it cost so much in India? The answer is tax! Actually, Tesla is not currently manufacturing vehicles in India. These cars are manufactured in China and imported into India.
In India, electric vehicles are subject to a 70% import charge. In addition, a 30% luxury tax is required. This is why over half of the car's price is paid to the government as tax.
People express anger on social media
On social media, many are venting their ire over Tesla's tariffs and costs. Several people even mockingly renamed Tesla "Tax-la". One user commented, "Purchasing a Tesla Model Y in India entails paying the company 27 lakhs and the government 33 lakhs in taxes. What is this if it's not tax robbery?" "Taxes are costing more than Tesla's car," remarked a different user. Not Tesla, but 'Tax-la' might be a better suffix." Also, many believe that Tesla's prices will stay unaffordable for the average person until it begins producing or, at the very least, assembling its cars in India.
One person commented, "Due to import taxes and duties, the price of the Tesla Model Y is doubling." In addition, GST, insurance, and road tax will be assessed. Tesla won't be successful in India if manufacturing doesn't begin there."
Tesla may face challenges due to taxes in India
Tesla has great plans for India, but costs and taxes might cause problems at first. According to experts, Tesla will lower import duties in addition to car prices if it establishes a production facility in India. As a result, more people will be able to own Tesla vehicles.
