India, Feb. 22 -- Amid speculations over Tesla's India entry, a report by CLSA said that the electric vehicle (EV) maker's cheapest car, Model 3, would cost around INR 35 Lakh to INR 40 Lakh in the country.

It estimated this price range for Tesla's Model 3 by road tax, insurance and other costs to the company's cheapest car in the US, which retails at around $35K. The total cost comes toaround $45K in India, which translates to INR 35 Lakh to INR 40 Lakh, CLSA said.

The brokerage firm anticipates this price range for the Tesla car in India despite the lower 15% to 20% import duties payable on foreign-made cars.

It is pertinent to note that the new EV manufacturing policy, brought by the union government last year, envisages a lower 15%...