Tesla’s Grand Entry into India

Global electric vehicle titan Tesla has finally stormed into India, unveiling its highly anticipated Model Y with a starting price of ₹59.89 lakh. The launch, marked by the opening of Tesla’s first-ever experience centre in Mumbai’s upscale Bandra Kurla Complex, signals the beginning of a new era for electric mobility in the country. Led by billionaire visionary Elon Musk, Tesla is set to electrify India’s roads with its premium mid-sized electric SUV, imported directly from its Shanghai factory as a completely built unit (CBU).

Model Y Variants and Pricing

Tesla’s Model Y arrives in two exciting variants:

• Rear-Wheel Drive: Priced at ₹59.89 lakh, offering a 500 km range on a single charge.
• Long-Range Rear-Wheel Drive: Priced at ₹67.89 lakh, boasting an impressive 622 km range.

Both variants are customizable through Tesla’s Design Studio, allowing buyers to personalize their Model Y’s exterior, interior, and features. Deliveries are expected to kick off in Q3 and Q4 of 2025 for the two variants, starting in Delhi, Mumbai, and Gurugram.

Also Read: Tesla’s Big India Push: First Store Opens in Mumbai as Elon Musk’s EV Empire Hits the Subcontinent!

Competing in India’s Luxury EV Market

The Model Y is poised to take on luxury electric vehicles from German giants like Mercedes-Benz, BMW, and Audi. While Indian manufacturers like Tata Motors and Mahindra & Mahindra offer EVs priced below ₹30 lakh, Tesla’s premium positioning targets affluent buyers seeking cutting-edge technology and performance. For context, the Model Y long-range rear-wheel drive variant retails for $37,490 (approximately ₹31.5 lakh) in the US, highlighting the impact of India’s import tariffs on pricing.

Mumbai Experience Centre and Charging Infrastructure

Inaugurated by Maharashtra Chief Minister Devendra Fadnavis, Tesla’s Mumbai Experience Centre at Maker Maxity Commercial Complex is designed to immerse customers in the Tesla ecosystem. Tesla’s APAC chief, Isabel Fan, emphasized the company’s mission to redefine transportation and foster a sustainable future. To support its vehicles, Tesla plans to establish four charging stations each in Mumbai and Delhi, with further expansion of experience centres, service, and charging infrastructure across India.

India’s Push for EV Manufacturing

Tesla’s entry via the import route comes as the Indian government actively courts global EV makers to establish local manufacturing. In June 2025, the government introduced a scheme allowing the import of up to 8,000 electric four-wheelers annually at a reduced 15% import duty (down from 70-100%), provided companies invest ₹4,150 crore in local manufacturing facilities. Despite this, Tesla has opted to import its vehicles for now, a move that has sparked debate. US President Donald Trump recently called such strategies “unfair” to the US, while Elon Musk has previously expressed reluctance to manufacture in India without first establishing sales and service operations.

Maharashtra’s Pitch to Tesla

At the launch, Chief Minister Fadnavis invited Tesla to consider Maharashtra for future research, development, and manufacturing facilities. “We want to see Tesla’s innovation take root in India, and Maharashtra is ready to be your partner,” he said. This aligns with India’s broader ambition to become a global hub for EV manufacturing, though Commerce Minister Piyush Goyal has made it clear that India’s policies will not be tailored solely for Tesla but will attract EV makers worldwide.

Tesla’s Strategic Moves in India

Tesla’s Indian subsidiary, Tesla India Motors and Energy Pvt Ltd, recently secured a trade certificate from the Andheri Regional Transport Office, enabling vehicle showcases, test drives, and sales. The company also leased a 24,565 sq ft warehousing space in Mumbai’s Lodha Logistics Park for five years, signaling a long-term commitment. However, Union Heavy Industries Minister H D Kumaraswamy noted in June that Tesla is currently focused on establishing showrooms rather than manufacturing in India.

Challenges and Opportunities

Tesla’s India debut comes at a time when the company faces declining sales in Europe and China. By tapping into India’s fast-growing economy and rising demand for premium EVs, Tesla aims to capture a new market. However, high import tariffs and the absence of local manufacturing may pose challenges to affordability and scalability. Despite this, Tesla’s arrival is a game-changer, promising to accelerate India’s transition to a greener, zero-emission future.

Also Read: Tesla’s Big India Push: First Store Opens in Mumbai as Elon Musk’s EV Empire Hits the Subcontinent!