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While Tesla’s longanticipated entry into the Indian market on Tuesday is set to grab the headlines, it is Kia that will corner a larger share of consumer interest, and sales, in the weeks ahead. The South Korean automaker is gearing up to launch the Carens Clavis EV, a sevenseater electric vehicle priced under Rs 20 lakh, which is expected to be a major draw in a market that is rapidly warming up to electric mobility in the subRs 20 lakh segment.

Kia’s new offering will be its third electric model in the country and the first in a more accessible price band. Designed specifically for Indian consumers, the Clavis EV underscores Kia’s renewed focus on massmarket electric vehicles. With this model, the company is targeting sales of 36,000 EVs in 2027, aiming for a 10% contribution to its total domestic volumes.

The launch comes at a time when the subRs 20 lakh EV segment has become the most competitive and fastestgrowing space in the passenger vehicle market. In less than a year, four models in this segment have been launched, and two more are on the horizon. Among them are Vietnamese automaker VinFast’s VF6 and VF7,  which will open for bookings on July 15. While the VF7 will be priced below Rs 30 lakh, the VF6, positioned squarely in the underRs 20 lakh bracket, is likely to stir competition. Production of both models will begin by the end of July at VinFast’s Tamil Nadu facility, with deliveries expected to start ahead of the festive season.

Other players have already marked their territory. Mahindra & Mahindra’s BE 6 and JSW MG Motor India’s Windsor, both priced under Rs 20 lakh, debuted late last year. In the coming weeks, market leader Maruti Suzuki is expected to enter the EV space with the eVitara, also targeting this segment. Tata Motors is preparing to introduce the Sierra EV shortly thereafter, further intensifying the competition.

The subRs 20 lakh bracket has traditionally been dominated by Tata Motors with popular models such as the Nexon EV, Tiago EV, and Punch EV. However, recent launches in the range of Rs 15 lakh to Rs 30 lakh are reshaping the market. According to the Federation of Automobile Dealers Association, Tata Motors’ share in June stood at 36%, followed by JSW MG at 30% and Mahindra at 23%.

Against this backdrop, Tesla’s India debut will be closely watched, even if it doesn’t immediately translate into large volumes. The USbased EV pioneer will inaugurate its first South Asian experience centre on Tuesday in Bandra Kurla Complex. The showroom will feature its global EV lineup, imported as fully built units, a strategy that contrasts with local assembly routes adopted by rivals like MercedesBenz and BMW.

Despite the buzz surrounding Tesla, its vehicles will likely remain niche due to pricing and import duties. In contrast, companies like Kia, VinFast, and Mahindra are betting on local manufacturing, competitive pricing, and broader consumer appeal to make inroads into the growing EV market. As the battle for dominance intensifies, it’s the subRs 20 lakh segment that looks set to drive the next wave of electric vehicle adoption in the country.