Prime Highlights
- Tesla begins formal rollout of Model Y in India with two versions.
- Priced at ₹60 lakh for RWD and ₹68 lakh for Long-Range AWD.
Key Facts
- New import duties push prices by more than ₹21 lakh per unit.
- Tesla Mumbai store opens; Delhi store follows shortly.
Key Background
Tesla made its official Indian entry with the launch of its electric SUV, Model Y, and it’s a huge milestone in Indian EV history. Two models were launched: the Rear-Wheel Drive (RWD) at approximately ₹60 lakh and the Long-Range All-Wheel Drive (AWD) at approximately ₹68 lakh. Prices are ex-showroom and much more expensive than international prices as a result of excessive import duty and other log-gistics charges.
The launch also came at a time when Tesla opened its first Indian showroom in the Bandra-Kurla Complex of Mumbai. Tesla is going to start deliveries in the third quarter of 2025. Tesla is going to open another showroom in Delhi soon. This retail-led approach mirrors Tesla’s worldwide direct-to-consumer model, through which cars are sold by company-owned showrooms and not dealerships.
The high costs are due to India’s import tax on completely built electric cars, which is up to 70%. This is an additional ₹21 lakh or so for each imported car. In contrast to markets where Tesla enjoys the benefit of local production, here the cars are being directly imported from the company’s Shanghai factory. There are no plans as of now for local production, though this can also greatly cut costs in the future.
Tesla’s foray into India is strategic, particularly as the carmaker looks to increase its footprint worldwide with intensifying competition in the electric vehicle space led by Chinese rival BYD. India being the world’s third-largest auto market is a high-risk and high-reward opportunity. While EVs now constitute around 4% of autos sales in India, the segment is likely to grow manifold with rising government incentives and the spread of infrastructure.
In spite of the premium segment pricing, the entry by Tesla is a strategic and symbolic move that can offer a bridgehead for growth to come, which can even encompass local production and broader model presence in India.
