Tesla has officially announced the pricing for its Model Y SUV in India, marking the long-awaited entry of the electric vehicle giant into the country’s growing EV market.
Tesla Model Y Rolls into India
The Model Y will be available in two variants for the Indian market. The standard rear-wheel-drive (RWD) option offers a claimed range of 500 kilometers and is priced at approximately Rs 60 lakh.
For those seeking more range, the long-range variant boasts an impressive 622 kilometers and will cost around Rs 70 lakh. Deliveries for these electric SUVs are expected to commence from the final quarter of 2025.
Customers will be able to register their new Teslas in major cities including Delhi, Gurugram, and Mumbai. Additionally, the company is set to open its first retail showroom in Mumbai.
An exciting upgrade available for the Model Y is the full self-driving capability, which can be enabled for an extra Rs 6 lakh. Tesla notes that the activation and use of these advanced features will depend on achieving high reliability and regulatory approval.
It’s important to note that the Model Y is significantly more expensive in India compared to the United States, where it sells for roughly $38,000 (around Rs 33 lakh). This price difference is primarily due to India’s high import duties on completely built units (CBUs).
Tesla’s Long and Winding Road to India
Tesla’s entry into India has been a journey filled with anticipation and some public back-and-forth. Back in 2021, Tesla founder Elon Musk openly criticized India’s high import duty structure, calling it “the highest in the world by far of any large country.” Import duties on fully assembled cars can soar as high as 110 percent.
The company’s initial attempt to enter the market dates back to 2016 when it opened pre-bookings for its Model 3, allowing Indian customers to place a refundable deposit. However, those customers received refunds earlier this year as the Model 3 has since been discontinued.
India’s Push to Attract EV Manufacturing
In a move largely seen as an effort to attract global EV manufacturers like Tesla, the Indian government last year introduced a new EV policy. This policy offers eased duty norms for a limited number of EV imports, provided manufacturers commit to setting up production facilities in India with a minimum investment of Rs 4,150 crore.
Under this scheme, eligible global manufacturers can import up to 8,000 completely built-up units (CBUs) of electric four-wheelers annually at a reduced customs duty of 15 percent for a five-year period. This applies to vehicles with a minimum import value of $35,000.
The new policy significantly lowers the typical customs duty on CBUs, which ranges from 60 percent to 100 percent depending on the vehicle’s cost. This move effectively addresses Tesla’s earlier demand for lower import duties and is aimed at boosting India’s domestic EV manufacturing sector.
Manufacturing Plans Remain Unclear
Despite these eased norms, Tesla has yet to commit to manufacturing its cars in India. While the company has substantial assembly operations in China, a key market for Tesla, its focus for India currently appears to be on sales rather than local production.
Union Heavy Industries Minister H D Kumaraswamy recently stated that Tesla was not interested in manufacturing in India, but rather in opening two retail stores. Interestingly, other global EV makers, including Mercedes-Benz, Volkswagen-Škoda, Hyundai, and Kia, have reportedly shown interest in applying under India’s manufacturing promotion scheme.
- Tesla Model Y launches in India with two variants: RWD (~Rs 60 lakh) and Long Range (~Rs 70 lakh).
- Deliveries are slated for the final quarter of 2025.
- High import duties make the Model Y significantly more expensive in India compared to the US.
- India’s new EV policy offers reduced import duties for manufacturers who commit to local investment.
- Despite the new policy, Tesla has not yet committed to manufacturing vehicles in India.
This development marks a significant step for Tesla in the Indian market, as the nation continues its efforts to grow into a major global EV hub.
