Most-affordable Tesla EV may be made in Germany. Will it ever come to India?

Tesla is reportedly planning to build its most affordable electric vehicle (EV) ever at its plant in Germany but all eyes would be on if such a model will also be offered in emerging markets like India and Brazil. At present, Tesla is not available in either India or Brazil even though both are strong vehicle markets for global brands.

A Tesla EV that is more affordable than the Model 3 has been in the plans for some time now with Tesla CEO Elon Musk highlighting that it could be a shot in the arm for his company as it looks to expand to newer markets. At present, Model 3 is the most affordable Tesla that money can buy and starts at $38,990 in the US market (approximately ₹32.50 lakh).

The cheaper alternative to even the Tesla Model 3 is likely to be priced at around $27,000 (approximately ₹22.50 lakh), according to a Reuters report, although the company has not made an official statement on the planned price structuring or even the specifications of the offering. But Musk had previously highlighted how a more affordable EV from Tesla could help the company ramp up sales numbers further, especially if and when it enters emerging markets like India and Brazil. The first time Musk had made a reference to such an offering was back in 2018.

A new and cheapest Tesla EV does hold a lot of potential for a company that is looking at lowering production costs while aiming to increase vehicle deliveries to 20 million by 2030. It could also hold Tesla in good stead, especially as demand for EVs is easing out in many countries. Price cuts, an option rolled out by Tesla in recent times, may only help to an extent. And then there are rival brands that are always looking to close the gap that Tesla has enjoyed.

An India entry could, therefore, help Tesla achieve its stated and planned targets, especially because this is the world's third-largest vehicle market. But the spread of EVs here is more gradual than in western countries and much would depend on the crucial factor of affordability.