Tesla has made its much-awaited entry into the Indian electric vehicle market with the launch of the Model Y SUV, priced from ₹60 lakh. Alongside this, the company has inaugurated its first retail showroom in Mumbai. While this marks a significant milestone for Tesla, the premium pricing in India stands in sharp contrast to the vehicle’s cost in global markets such as the United States, China, and Germany, highlighting the impact of India’s high import duties.
Tesla is currently offering two variants of the Model Y in India:
These prices are for outright purchases, with no lease or financing options announced yet.
When compared to key global markets, Indian buyers are paying a significantly higher amount:
The substantial difference can largely be attributed to India’s 70% import duty on completely built-up electric vehicles priced under $40,000. According to Bloomberg, Tesla has already imported 5 Model Y units to Mumbai from its Shanghai plant, each attracting over ₹21 lakh in import duties.
Coinciding with the vehicle launch, Tesla opened its first physical showroom in India at a premium location in Mumbai. The launch event took place at 10 AM and signals Tesla’s official entry into the Indian automotive retail space.
The company had secured the lease for the Mumbai outlet in March and has since focused on local hiring and infrastructure setup. Expansion into New Delhi is also expected in the near future.
Tesla will operate on a company-owned showroom model, consistent with its global retail approach. Unlike traditional automakers in India that operate through dealership networks, Tesla prefers to directly handle sales and service, ensuring full control over pricing, branding, and customer experience.
Tesla’s India entry comes as the EV giant looks to expand its footprint in new regions, facing increased competition globally, especially from Chinese EV manufacturers like BYD and XPeng.
India, being the world’s 3rd-largest automobile market, presents a significant opportunity despite challenges like an underdeveloped charging infrastructure and high import costs. Tesla has also been in discussions with Indian authorities regarding local manufacturing, which could eventually reduce costs and make its vehicles more competitively priced.
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Tesla’s launch of the Model Y at a starting price of ₹60 lakh and the inauguration of its first Mumbai showroom mark a landmark entry into the Indian market. While pricing remains substantially higher than in the US, China, and Germany, the move reflects Tesla’s long-term ambition to gain a foothold in one of the world's fastest-growing EV markets.
As policies evolve and infrastructure improves, Tesla’s presence could accelerate the adoption of premium electric vehicles in India.
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Published on: Jul 15, 2025, 10:43 AM IST
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