Tesla Makes Indian Debut with Showroom Unveiling and Model Y Launch
## Tesla Model Y Debuts in India, but High Prices Remain
Tesla has officially launched its Model Y electric SUV in India, marking the company's entry into the Indian market. The Model Y is available in two variants: the Rear-Wheel Drive (RWD) priced at ₹59.89 lakh and the Long Range RWD at ₹67.89 lakh (ex-showroom).
Customers can reserve a Model Y with a token amount of ₹22,220, followed by ₹3 lakh within seven days for confirmation. The car boasts a claimed range of up to 622 km, fast charging capability, and a 0–100 kmph time of under 5.6 seconds. Features include a 15.4-inch touchscreen, rear touchscreen controls, advanced driver assistance systems, wireless charging, and powered front seats.
However, the Indian prices are nearly double those in the U.S., even after a recent compromise on import duties for electric vehicles (EVs). For instance, the RWD Model Y in India is about $71,000, while the U.S. price is significantly lower. This difference is largely due to Tesla not taking advantage of India's EV import duty reduction offer, which requires a commitment to local manufacturing.
In 2024, India announced a significant reduction in import duties for a limited number of EVs, provided the automaker commits to investing at least $500 million and establishing local manufacturing within three years. However, as of early 2025, Tesla has reportedly informed the Indian government that it has no immediate plans to manufacture EVs in India, thereby foregoing the reduced import duty benefit.
Without local manufacturing, Tesla’s vehicles continue to attract standard import duties, keeping prices high and limiting their competitiveness against locally assembled or manufactured EVs from rivals like Tata and MG. The high price tag reflects Tesla’s current strategy of targeting a premium segment in India, with unclear immediate prospects for a price drop unless the company changes its approach to local production.
Tesla's expansion in India includes plans for a wider geographical presence and infrastructure development. The company has committed to building a service and warehouse centre in Kurla West, complementing its existing Pune engineering hub and Bengaluru office. Tesla is also offering Full Self-Driving (FSD) for an additional ₹600,000 INR.
The first Tesla showroom in India, a 4,000 sq. ft "Tesla Experience Centre", is now open at the Maker Maxity mall in Mumbai's Bandra Kurla Complex. This is the first of several planned locations, providing potential buyers with the opportunity to test drive vehicles, explore configurations, and learn about the brand.
Customers in India can now place Model Y orders online, with support currently focused around Mumbai. The Model Y RWD variant will begin deliveries in Q3 2025, and the Long Range RWD will arrive in Q4. If the import taxes are lowered to around 10%, the Model Y would become more affordable in India. Tesla is currently in discussions with the Indian government to potentially lower automotive import taxes.
Despite the high prices of Tesla's Model Y in India, potential customers can still reserve the electric SUV with a token amount, and it will offer features such as a 15.4-inch touchscreen, advanced driver assistance systems, and fast charging capabilities. The entry of Tesla into the Indian market sparked interest in premium electric-vehicles, fostering a shift towards a more tech-oriented lifestyle, with gadgets like the Model Y's touchscreens and electric-vehicles like the Model Y and future offerings from competitors like Tata and MG influencing this transformation.
