Tesla will sell its Model Y electric vehicles in India at a starting price of ₹60 lakh ($69,765.82), according to the price list published on its website on Tuesday. The company is offering the Model Y rear-wheel drive for ₹60 lakh for buyers paying in full, while the long-range rear-wheel drive version is priced at ₹68 lakh.
In other countries, the Model Y starts at $44,990 in the United States, 263,500 yuan in China, and €45,970 in Germany.
The Indian pricing represents a difference of around $15,000 compared to the vehicle’s base price in the US, before any federal tax incentives.
Also Read: Tesla almost here in ‘toughest car market’, but not the way India’s policymakers wanted
However, Tesla is not entering India with the aim of immediately achieving high sales figures. Instead, it has a plan that might appear hidden in plain sight.
Tesla had shown interest in the Indian market as far back as 2015, but no major progress was made for nearly ten years. One of the biggest obstacles has been India’s high import taxes, which can go up to 100% on fully built imported vehicles.
In 2021, Elon Musk had posted on social media that India’s import duties were “the highest in the world by far”. At the time, he also said Tesla wanted to assess demand before making any commitments to manufacturing in India.
Now, after years of speculation, Tesla is launching its first showroom in India. The move comes at a time when the electric carmaker is trying to enter new markets and balance out slowing demand in its more established territories. The first outlet, spread across 4,000 square feet, is opening in the Bandra Kurla Complex, a major financial area in Mumbai. It will feature Model Y crossovers built in China.
A second showroom is expected to open in New Delhi by the end of this month. Tesla has also increased hiring locally and booked warehousing space to support operations.
However, Tesla has not committed to building a factory in India, even though the country is now the third-largest automobile market in the world. The company's current focus appears to be on testing how the brand is received and whether there is demand for its electric vehicles.
“It’s not meaningful from a volume standpoint yet,” Bloomberg quoted Jay Kale, an analyst at Elara Securities based in Mumbai, as saying. “But it plants the brand. Over time, as charging infrastructure improves and the lineup expands, Tesla could scale.”
The company’s India entry is happening at a time when it is dealing with challenges in both the United States and China — its two main markets. Tesla’s sales declined in the previous quarter, and it is looking to avoid another year of falling numbers after a difficult 2024.
In the first quarter of 2025, Tesla’s gross margin fell to 16.3%, down from 17.4% during the same period last year.
Revenue between January and March reached $19.34 billion, lower than the market estimate of $21.11 billion. This was a result of weak demand and downward pressure on pricing.
China, which had once been one of Tesla’s strongest regions, has seen the company’s market share fall. In the first five months of 2025, Tesla held 7.6% of the EV market in China, compared to 10% in the previous year and 15% at its peak in 2020. Local rivals such as BYD and Xiaomi have been attracting buyers with electric vehicles that are well-equipped and priced more competitively.
Globally, Tesla has been losing market share to Chinese manufacturer BYD Co. For Tesla, India now offers a way to grow in a large market that still has relatively low EV adoption, partly because of trade restrictions and other barriers.
India, currently the world’s third-largest car market, offers a major opportunity for Tesla, particularly in the high-end electric vehicle space where competition is still limited. With the government actively promoting electric transport through Production-Linked Incentive (PLI) schemes and subsidies from various states, Tesla’s entry is likely to draw more attention and investment to this segment.
Meawhile, despite the Model Y being the best-selling electric car worldwide, it is expected to remain out of reach for most Indian buyers. The share of electric vehicles in India is still under 5%, and luxury cars overall account for only 1% of the country's vehicle sales.
Tesla’s main competitors in India are likely to be high-end brands such as BMW and Mercedes-Benz Group AG. It is not expected to compete directly with lower-priced carmakers like Tata Motors Ltd., Mahindra & Mahindra Ltd., or MG Motor India Pvt.
The company has shown interest in building cars locally — something Indian authorities have supported as it could lower import costs — but Tesla has not yet made any formal commitments in this regard.
Meanwhile, India and the United States are in discussions for a trade agreement that could include lower tariffs on car imports. This is something Musk has been calling for over several years. What remains uncertain is whether Musk’s current tensions with US President Donald Trump will affect Tesla’s chances of securing such tariff relief.
Tesla’s official launch in India comes after the resignation of its former India operations head in May. Still, the opening of the Mumbai showroom appears to mirror Tesla’s earlier approach in China — where the company built buzz around its brand before moving into local manufacturing and accelerating its sales campaign.
(with Bloomberg inputs)
In other countries, the Model Y starts at $44,990 in the United States, 263,500 yuan in China, and €45,970 in Germany.
The Indian pricing represents a difference of around $15,000 compared to the vehicle’s base price in the US, before any federal tax incentives.
Also Read: Tesla almost here in ‘toughest car market’, but not the way India’s policymakers wanted
However, Tesla is not entering India with the aim of immediately achieving high sales figures. Instead, it has a plan that might appear hidden in plain sight.
Tesla had shown interest in the Indian market as far back as 2015, but no major progress was made for nearly ten years. One of the biggest obstacles has been India’s high import taxes, which can go up to 100% on fully built imported vehicles.
In 2021, Elon Musk had posted on social media that India’s import duties were “the highest in the world by far”. At the time, he also said Tesla wanted to assess demand before making any commitments to manufacturing in India.
Now, after years of speculation, Tesla is launching its first showroom in India. The move comes at a time when the electric carmaker is trying to enter new markets and balance out slowing demand in its more established territories. The first outlet, spread across 4,000 square feet, is opening in the Bandra Kurla Complex, a major financial area in Mumbai. It will feature Model Y crossovers built in China.
A second showroom is expected to open in New Delhi by the end of this month. Tesla has also increased hiring locally and booked warehousing space to support operations.
However, Tesla has not committed to building a factory in India, even though the country is now the third-largest automobile market in the world. The company's current focus appears to be on testing how the brand is received and whether there is demand for its electric vehicles.
“It’s not meaningful from a volume standpoint yet,” Bloomberg quoted Jay Kale, an analyst at Elara Securities based in Mumbai, as saying. “But it plants the brand. Over time, as charging infrastructure improves and the lineup expands, Tesla could scale.”
The company’s India entry is happening at a time when it is dealing with challenges in both the United States and China — its two main markets. Tesla’s sales declined in the previous quarter, and it is looking to avoid another year of falling numbers after a difficult 2024.
In the first quarter of 2025, Tesla’s gross margin fell to 16.3%, down from 17.4% during the same period last year.
Revenue between January and March reached $19.34 billion, lower than the market estimate of $21.11 billion. This was a result of weak demand and downward pressure on pricing.
China, which had once been one of Tesla’s strongest regions, has seen the company’s market share fall. In the first five months of 2025, Tesla held 7.6% of the EV market in China, compared to 10% in the previous year and 15% at its peak in 2020. Local rivals such as BYD and Xiaomi have been attracting buyers with electric vehicles that are well-equipped and priced more competitively.
Globally, Tesla has been losing market share to Chinese manufacturer BYD Co. For Tesla, India now offers a way to grow in a large market that still has relatively low EV adoption, partly because of trade restrictions and other barriers.
India, currently the world’s third-largest car market, offers a major opportunity for Tesla, particularly in the high-end electric vehicle space where competition is still limited. With the government actively promoting electric transport through Production-Linked Incentive (PLI) schemes and subsidies from various states, Tesla’s entry is likely to draw more attention and investment to this segment.
Meawhile, despite the Model Y being the best-selling electric car worldwide, it is expected to remain out of reach for most Indian buyers. The share of electric vehicles in India is still under 5%, and luxury cars overall account for only 1% of the country's vehicle sales.
Tesla’s main competitors in India are likely to be high-end brands such as BMW and Mercedes-Benz Group AG. It is not expected to compete directly with lower-priced carmakers like Tata Motors Ltd., Mahindra & Mahindra Ltd., or MG Motor India Pvt.
The company has shown interest in building cars locally — something Indian authorities have supported as it could lower import costs — but Tesla has not yet made any formal commitments in this regard.
Meanwhile, India and the United States are in discussions for a trade agreement that could include lower tariffs on car imports. This is something Musk has been calling for over several years. What remains uncertain is whether Musk’s current tensions with US President Donald Trump will affect Tesla’s chances of securing such tariff relief.
Tesla’s official launch in India comes after the resignation of its former India operations head in May. Still, the opening of the Mumbai showroom appears to mirror Tesla’s earlier approach in China — where the company built buzz around its brand before moving into local manufacturing and accelerating its sales campaign.
(with Bloomberg inputs)
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