Tesla has officially launched the Model Y in India, pricing it at approximately ₹70 lakh ($70,000), significantly higher than in the U.S., China, or Germany. This steep price tag reflects India’s elevated import duties on electric vehicles — a concern CEO Elon Musk has frequently raised.
Deliveries are set to begin in the third quarter of this year, with Tesla positioning itself in the premium EV segment, targeting affluent buyers in a market where EVs currently make up just 4% of total automobile sales.
Unlike local players such as Tata Motors and Mahindra, Tesla is expected to compete with global luxury brands like BMW, Mercedes-Benz, and Kia. The U.S.-based EV giant inaugurated its first Indian showroom in Mumbai on Tuesday and has started accepting orders for the Model Y via its official website.
The rear-wheel drive version of the Model Y is priced at ₹60 lakh, while the long-range variant is listed at ₹68 lakh, inclusive of all import duties and state levies. In contrast, the same model starts at $44,990 in the U.S., 263,500 yuan ($36,700) in China, and €45,970 ($53,700) in Germany.
During a media-only event in Mumbai, Tesla showcased two China-manufactured Model Y units alongside its Supercharger system, which will initially be installed at eight locations in Mumbai and Delhi NCR. The next Tesla showroom is expected to open in New Delhi soon.
“We are not just launching a car; we’re building a complete ecosystem,” said Isabel Fan, Tesla’s Regional Director, emphasizing the company’s commitment to developing nationwide charging infrastructure from scratch.
Tesla’s entry into India marks a long-awaited milestone for the brand, which previously explored the possibility of setting up local manufacturing. However, for now, the company will import vehicles, facing duties that can exceed 100%, significantly impacting pricing for Indian consumers.