Elon Musk’s Tesla officially began its entry into the Indian market on July 15. The company launched its first-ever showroom in Mumbai’s Bandra-Kurla Complex (BKC).
They initially launched their flagship Model Y in India, which is priced at around Rs 61 Lakh (ex-showroom price), but this same model is priced at Rs 32 Lakh in the U.S.
Seems shocking, but that’s the reality, and thanks to unique Indian Taxes for leading this massive difference.
Taxes on imported cars in India:
- 28% GST on cars
- 22% Cess on luxury or higher-end vehicles
- 10% Road Tax, varying by state
- 18% GST on insurance premiums
- Import duties, tariffs, shipping, and port handling charges
- Miscellaneous tolls and fees
If we compare these taxes to the U.S., we can get a clear picture of how India’s fees are sucking its citizens.
There in the US, if we import a car like the Tesla Model Y, it attracts just 2.5% import duty, plus a state sales tax of around 6-9%, and minimal registration fees.
India imposes up to 100% import duty, 28% GST, 22% Cess, 10% road tax, and 18% GST on insurance, in addition to high fuel taxes for non-EVs.
This layered taxation almost doubles the car’s price in India, making premium vehicles far less accessible compared to the US.
This is not the first debate regarding unwanted car taxes in India; previously, netizens compared the price of Toyota’s Land Cruiser, which costs around Rs 2.5 Cr in India to approximately Rs 60 lakhs in Dubai.
Many believe that “In Dubai, these cars are affordable; in India, they are aspirational.”
