Tesla Drives Into India With Pricey Model Y

After four long years of wait, EV giant Tesla has officially launched in India. The Elon Musk-led company has driven into the Indian roads via its electric midsize SUV Tesla Model Y. 

The company’s first India launch, Tesla Model Y RWD (rear wheel drive), comes with a hefty price of INR 59.89 Lakh. The second Tesla car launched in India, Tesla Model Y Long Range RWD, comes with a price of INR 67.89 Lakh. Additionally, the company is selling its home charger at $420. 

Meanwhile, the company’s first India showroom was unveiled in Mumbai’s Bandra Kurla Complex (BKC). At the launch event, Maharashtra chief minister Devendra Fadnavis said, “This is not just the inauguration of an experience centre but a statement that Tesla has arrived, a statement that it has arrived in the right city and state…Tesla is not just a car and car company but stands for innovation and sustainability.”

While this officially marks an end to Tesla’s long road to India, we can only expect to see the company’s cars plying the Indian roads at least by August, as per reports. As of now, earlier reports indicated that customers will be able to configure and order Tesla EVs. The first week of the Mumbai showroom’s operations will focus on VIPs and business partners. The general public will be granted access in the following week. 

Pertinent to mention that the company’s midsize SUV, Model Y, is priced at around $46K in the US, which translates to about INR 40 Lakh per car. The heavy prices come due to exceptionally high tariffs and related duties in India, which can exceed 100% in India.

This is despite the fact that the Indian government recently cut import duties for international companies under the Scheme to Promote Manufacturing of Electric Passenger Cars in India (SPMEPCI) if they agree to invest INR 4,150 Cr (about $500 Mn) to set up an EV manufacturing unit in the country. However, Tesla refrained from partaking in the scheme.

Back in June, the union minister of heavy industries H D Kumaraswamy said that the government would be looking at attracting the likes of Mercedes Benz, Hyundai, Kia, and Volkswagen, for the scheme. He added that the aforementioned companies have already shown interest in manufacturing in India. 

The company’s hefty price tag pits it against legacy automakers, Mercedes and BMW. While Mercedes-Benz EQA’s ex-showroom price in Delhi is at INR 67.2 Lakh, BMW’s i4 pricing starts at INR 72.5 Lakh. 

Tesla’s India entry comes at a time when the EV four wheeler market is expanding rapidly. As per FADA, the Indian electric passenger vehicle market reached a 4.1% market share in May 2025. This represents a notable increase from 2.6% in May 2024. While Tata Motors remains the market leader, JSW’s MG Motor India and Mahindra & Mahindra are also building their market share in the growing EV four wheeler segment.