Electric vehicle giant Tesla has officially entered the Indian market, inaugurating its first showroom in Mumbai and showcasing its Model Y SUV.
Tesla Makes Grand Entry in Mumbai
Global EV powerhouse Tesla has finally arrived in India, marking its long-anticipated entry with the launch of its first showroom in Mumbai. The brand’s popular Model Y SUV took center stage at the inaugural event.
Maharashtra Chief Minister Devendra Fadnavis officiated the showroom’s opening. He emphasized that this event signifies more than just an experience center; it declares Tesla’s arrival in Mumbai, a city renowned for innovation and sustainability.
Meet the Tesla Model Y for India
The Model Y SUV will be available in two variants for Indian customers. The standard rear-wheel drive option boasts a claimed range of 500 km and is priced at approximately Rs 60 lakh. For those seeking more range, the long-range version offers an impressive 622 km and will cost around Rs 70 lakh.
Customers can expect deliveries to begin from the final quarter of 2025. Initially, the car can be registered in major cities like Delhi, Gurugram, and Mumbai.
The Model Y will also feature an optional upgrade for full self-driving capabilities, an additional cost of about Rs 6 lakh. Tesla stated that these advanced features will evolve through continuous over-the-air software updates, ensuring the car is always improving.
The Price Hurdle: India vs. US
It’s important to note that the Model Y will be significantly more expensive in India compared to the US. In America, it retails for around $38,000 (roughly Rs 33 lakh), making it almost twice as costly in India.
This stark price difference is primarily due to India’s high import duties on completely built units (CBUs). Currently, Tesla has no immediate plans for local manufacturing in India, as confirmed by Union Heavy Industries Minister H D Kumaraswamy last month.
India’s Push to Attract EV Manufacturers
Tesla’s entry follows a long and sometimes challenging negotiation period, largely centered on India’s import duty structure. Elon Musk had previously voiced concerns in 2021, stating that India’s duties were among the highest globally.
In response, the Indian government introduced a new EV policy last year. This policy aims to attract global manufacturers by easing import duties for a limited number of vehicles. To qualify, companies must commit to a minimum investment of Rs 4,150 crore in local manufacturing facilities.
Under this scheme, eligible manufacturers can import up to 8,000 electric four-wheelers annually at a reduced customs duty of 15% for five years. This policy effectively addresses Tesla’s earlier demands for lower import tariffs, which previously ranged from 60% to 100% depending on the vehicle’s value.
Manufacturing Ambitions and Future Outlook
Despite the new policy designed to promote EV production within India, Tesla has not yet committed to setting up manufacturing units in the country. The company’s significant assembly operations remain concentrated in China, a key global market for them.
While Tesla currently eyes India primarily for sales and experience centers, other global EV makers like Mercedes-Benz, Volkswagen-Škoda, Hyundai, and Kia have shown interest in applying under India’s local manufacturing promotion scheme. India’s automotive sector is rapidly growing, projected to double its market size by 2030, making it a crucial hub for the future of electric mobility.
- Tesla’s Model Y has officially launched in India, with its first showroom in Mumbai.
- The Model Y will be available in two variants, starting at around Rs 60 lakh, with deliveries from Q4 2025.
- High import duties make the Model Y significantly more expensive in India than in the US.
- India’s new EV policy offers reduced import duties for companies committing to local manufacturing.
- Despite the new policy, Tesla currently has no plans to manufacture vehicles in India.
Tesla’s arrival marks a significant moment for India’s burgeoning EV market, setting the stage for increased competition and innovation in sustainable transportation.
