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Tesla Opens First Showroom in India with Model Y, Netizens Slam ‘TAX-LA’ Prices Due to Import Duty and Luxury Tax

Tesla’s much-awaited India arrival has sparked outrage. Model Y begins at Rs. 59.89 lakh,  with almost half the price going towards import duties and luxury taxes. Social media users have renamed the EV behemoth to ‘TAX-LA.’ From furious rants to scathing sarcasm, netizens have made it loud and clear. For Tesla to flourish in India, it needs to do more than open showrooms; it needs to localize.

Mumbai Welcomes India’s First Tesla Showroom

Tesla’s first Indian showroom was opened in Mumbai, within the upscale Maker Maxity Mall at Bandra Kurla Complex (BKC). Maharashtra Deputy Chief Minister Devendra Fadnavis dedicated the outlet and encouraged Tesla to exceed sales.

“We want to see R&D and manufacturing happen in India. I am certain Tesla will consider it at a proper juncture,” said Fadnavis during the launch.

Model Y: Higher Taxes Than Tesla?

Tesla has launched two trims of its Model Y in India. The rear-wheel drive comes with a price tag of Rs. 59.89 lakh, while the long-range variant is priced at Rs. 67.89 lakh.

Most of these prices are due to taxation. According to a CNBC report, Tesla CFO Vaibhav Taneja confirmed that electric vehicle imports into India incur a 70% tariff. This tax is before an additional 30% luxury tax is imposed.

Social Media Reacts: ‘Almost Half of It Is Tax’

Tesla’s pricing has also triggered an online wave of discontent. One of them posted, “If you purchase a #Tesla Model Y in India, you’ll pay the company Rs. 33 lakh and the government Rs. 28 lakh. If this is not tax extortion, I don’t know what is.”

Another added facetiously, “It shouldn’t be Tesla, it should be TAX-LA.”

Others also noted that without local production or at least assembly, Tesla cars will continue to be beyond the reach of most Indians. “Price is double due to import duty, road tax, insurance, GST… Unless they produce here, they will not survive,” a post said.

Will Tesla Ride India’s EV Wave or Stall?

Despite the backlash, experts believe Tesla isn’t aiming to compete with budget EV players like Tata or Mahindra. Instead, its focus will be the premium segment, rivaling BMW, Audi, and Mercedes-Benz.

But the way forward is bright. Unless Tesla begins manufacturing or assembling vehicles in India, the brand will soon turn into a luxury tag and not a mass mobility revolution. Until that time, TAX-LA is here, but its road is far from smooth.