Tesla has officially entered the Indian market by launching the Model Y, with prices beginning at approximately ₹60 lakh. The rear-wheel-drive version is listed at ₹6 million, while the long-range variant comes in at ₹6.8 million, with the Full Self-Driving package available for an additional ₹600,000.

Tesla debuted its presence by opening an experience centre in Mumbai’s Bandra-Kurla Complex and immediately started accepting online orders, positioning the Model Y as a premium choice aimed at affluent buyers. Deliveries are expected to commence in the third quarter of 2025.

Notably, the launch comes at a significantly higher price compared to other markets: while the Model Y starts at ₹2.8 million plus high import duties, final prices were marked up to ₹6 million or more due to import levies surpassing 100% on fully built imports. These cars are sourced from Tesla’s Shanghai factory, as the company does not yet produce right-hand-drive versions in the U.S., and no local manufacturing operations have been announced.

Tesla’s premium approach sets it apart from domestic EV players like Tata Motors and Mahindra, indicating its intention to capture the luxury electric vehicle segment against established German brands such as BMW and Mercedes-Benz.

Although Tesla’s entry may be a bold statement, the wider implications for India’s EV landscape remain to be seen. With EVs currently accounting for only about 4–5% of new vehicle sales and luxury cars forming just a small share, the Model Y may initially serve more as a statement of intent than a sales volume driver. The move could, however, influence import tariff negotiations, given Musk’s prior criticism of India’s high duties and India’s openness to incentive discussions under its EV policy .

The strategic launch reflects Tesla’s broader ambition: to establish a foothold in one of the world’s largest automotive markets and test the waters for future investments. Prime Minister Narendra Modi and industry leaders like Maharashtra’s Chief Minister Devendra Fadnavis attended the unveiling, signaling government support and openness to Tesla’s digital-first, premium EV play .

Looking ahead, India’s policy environment—balancing tariffs with incentives for local manufacturing—will be critical in determining whether Tesla extends its presence beyond luxury imports to broader market participation.