Tesla launched its Model Y in India on Tuesday with a starting price of around $70,000, making it the most expensive market for the vehicle among major countries.
The company began accepting orders through its website and opened its first showroom in Mumbai, marking its formal entry into the Indian market.
Deliveries are expected to begin in the third quarter of 2025. Tesla will import the vehicles, which will face duties and tariffs that can exceed 100%, significantly raising the retail price.
The Model Y rear-wheel drive is priced at about 6 million rupees ($70,000), while the long-range version costs around 6.8 million rupees ($79,500). By comparison, the Model Y starts at $44,990 in the United States, 263,500 yuan ($36,700) in China, and 45,970 euros ($53,700) in Germany.
Tesla’s Full Self-Driving (FSD) package is also available in India at an additional cost of 600,000 rupees, with the company promising future updates to enable minimal driver intervention.
The cars showcased at the Mumbai launch were manufactured in China, as Tesla’s U.S. factories do not produce right-hand drive vehicles suitable for India.
Tesla is targeting India’s luxury EV segment, which represents just 4% of total vehicle sales in the country. It will compete primarily with German automakers like BMW and Mercedes-Benz rather than local brands such as Tata Motors and Mahindra.
Facing slowing global sales and excess production capacity, Tesla is using the import route to enter India despite earlier requests for lower import duties. Discussions between the Indian government and U.S. officials are ongoing under a possible bilateral trade agreement to reduce tariffs.
During the launch event, Maharashtra Chief Minister Devendra Fadnavis said he hoped Tesla would consider research, development, and manufacturing in India in the future.
