Why does a Tesla cost double in India?

Every second post on my LinkedIn feed is about #Tesla!
“How can the same car cost double in #India compared to the US?”
And of course, people are quick to mock our FM, pull out PPP stats, and write threads loaded with #sarcasm.

But let’s pause and look at a few facts:
Tesla is being imported as a Fully Built Unit. That means:
- Higher logistics and insurance costs
- Hefty import duties because India’s import policy intentionally discourages fully built car imports under its #MakeinIndia initiative

And honestly... that’s by design.
Why so?
Look at what happened in smartphones:
Before high duties and import restrictions, phones were mostly imported.
Now? Even if not full manufacturing, most brands assemble locally, creating jobs and improving supply chains. With every passing year, the localization is increasing!
The government is trying to replicate a similar strategy with EVs and automobiles.

Also, let’s not forget: Cars priced above ₹30 lakh cater to a very small segment of Indian consumers.
It makes for great engagement to rant about it on #SocialMedia...
But let’s not confuse that with national policy objectives.

What do you think, should India reduce import duties for luxury cars?