Tesla has officially entered the Indian market with the launch of its electric SUV, the Model Y, at a starting price of Rs 59.89 lakh (ex-showroom) (Rs 5.98 million), a price tag significantly higher than the global markets.
This is owing to the heavy import duties and logistical costs.
.jpg "Tesla launches Model Y in India at Rs 60 Lakh, much higher than global prices") |
| Model Y will be costly in India because the car will be imported from the Tesla Shanghai plant. |
The electric SUV will be available initially in Mumbai, Delhi and Gurugram, with deliveries set to begin in the third quarter of 2025.
Price in India vs US vs China vs Germany
The Tesla Model Y is priced at Rs 59.89 lakh for the Rear Wheel Drive (RWD) variant and Rs 67.89 lakh (Rs 6.8 million) for the long range model.
In comparison, the same vehicle costs around Rs 38.6 lakh ($44,990) in the United States, Rs 30.5 lakh (yuan 263,500) in China, and Rs 46 lakh (€45,970) in Germany.
The higher pricing in India is largely due to the country’s import policy. India levies up to 70 per cent tariff on imported electric cars priced below $40,000, and 100 per cent on cars above that threshold.
The Elon Musk company is currently importing Model Y units from its Shanghai (China) facility, resulting in additional logistics expenses.
Tesla starts India journey with retail store and warehousing space
Tesla has opened its first retail location in Mumbai, marking the company’s physical presence in India for the first time.
It also recently leased 24,565 sq ft of warehouse space in the Lodha Logistics Park, Mumbai, for its initial operations.
Despite years of talks with Indian authorities, the US auto giant has not committed to local manufacturing.
Union Heavy Industries Minister HD Kumaraswamy recently said that Tesla is more focused on opening showrooms than setting up production plants in the country.
Tesla Model Y: Range and battery options
In the Indian market, Tesla is offering the Model Y with two battery pack options:
60 kWh battery (Standard RWD): Claimed WLTP range of 500 km
75 kWh battery (Long Range RWD): Claimed WLTP range of 622 km
The vehicle will compete with premium entry-level electric cars in India, such as those from BMW and Mercedes-Benz, though at a notably higher price point due to import taxes.
No custom-made policy for Tesla, says government
Earlier this year, Commerce and Industry Minister Piyush Goyal clarified that India will not tailor its electric vehicle (EV) policies to suit individual companies like Tesla.
He said India’s goal is to attract all global EV manufacturers under a fair and consistent policy framework.
This statement came after Tesla showed no interest in India’s new EV policy, which offers lower import duties for companies that invest in local manufacturing or assembly.
E-Vroooom’s views
What next for Tesla India?
With limited availability and premium pricing, Tesla is clearly targeting high-end urban buyers in its initial phase.
Whether the company expands its presence will depend on how Indian consumers respond to the Model Y and how policies evolve around EV manufacturing.
For now, the arrival of Tesla marks a milestone in India’s electric vehicle journey, even as pricing remains a key hurdle.
Despite prices far above global rates, Tesla could witness significant sales as premium car buying has seen a surge in recent years.
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