In a landmark moment for India’s automotive sector, global electric vehicle (EV) leader Tesla has officially entered the Indian market. The much-anticipated launch took place on Tuesday with the unveiling of the Tesla Model Y, alongside the opening of the company’s first showroom and experience centre located at the upscale Maker Maxity Commercial Complex in Mumbai’s Bandra Kurla Complex (BKC).
The Mumbai centre was inaugurated in a high-profile event by Maharashtra Chief Minister Devendra Fadnavis, symbolising Tesla’s serious intent to make its mark in one of the world’s fastest-growing auto markets. This entry marks a new chapter in India’s transition towards clean and premium electric mobility.
Tesla Model Y Launched in India: Premium Pricing, Luxury Segment Target
Tesla’s debut product for the Indian market, the Model Y, has been introduced at a starting price of approximately 6 million rupees (around $70,000) for the rear-wheel drive version, with the long-range variant priced closer to 6.8 million rupees ($79,000). These prices make it the most expensive among Tesla’s global offerings, a consequence of India’s steep import tariffs, which can exceed 100% on fully assembled vehicles.
In comparison, the Model Y retails for around $44,990 in the United States, 263,500 yuan ($36,700) in China, and approximately €45,970 ($53,700) in Germany — highlighting the price gap due to import duties in #India.
Tesla is also offering its Full Self-Driving (FSD) package in India, priced at an additional 600,000 rupees, catering to customers seeking Tesla’s hallmark autonomous driving features.
Targeting the Niche Luxury EV Market
Unlike other EV manufacturers in India like Tata Motors and Mahindra, which cater to the mass and affordable segments, Tesla is positioning itself within India’s niche luxury EV space, competing with international premium brands such as BMW, Audi, and Mercedes-Benz.
Tesla’s initial strategy focuses on offering completely built units (CBUs) imported from its manufacturing facility in China, with deliveries of the Model Y expected to commence in the third quarter of 2025.
While Tesla vehicles will be beyond the reach of average Indian consumers for now, the company’s arrival is expected to significantly raise awareness and aspirations for electric vehicles across India.
Maharashtra Welcomes Tesla: Hopes for Future Manufacturing and R&D
Chief Minister Fadnavis expressed his strong support for Tesla’s entry, encouraging the EV giant to consider India — and Maharashtra in particular — not just as a market for sales but as a potential hub for manufacturing and research & development.
“In the future, we hope to see Tesla’s R&D and manufacturing operations take root in India,” said Fadnavis. “Maharashtra will be a proactive partner in that journey.”
He described the opening of Tesla’s Mumbai experience centre as a clear message that “Tesla has arrived in the right city and the right state.” Mumbai, he said, is synonymous with innovation, sustainability, and global ambition.
Fadnavis recalled his first encounter with Tesla during a 2015 visit to the United States. “I experienced Tesla back then and thought — we need this kind of sustainable mobility in India. It has taken a decade, but finally, you are here. And you are most welcome,” he added warmly.
Tesla Sets Up Warehouse Operations in Mumbai
In preparation for its India launch, Tesla has already started laying the foundation for logistical support. The company has leased over 24,500 sq ft of warehouse space at Lodha Logistics Park in Mumbai, a move industry insiders view as essential for streamlining deliveries, managing inventory, and facilitating after-sales services.
Tesla’s Indian subsidiary, Tesla India Motors and Energy Pvt Ltd, also recently received a trade certificate from the Mumbai Regional Transport Office (RTO). This certification allows the company to legally showcase vehicles, offer test drives, and begin the pre-sales and marketing process across India.
High Tariffs Still a Challenge: Tesla vs Government on Policy
Despite the warm welcome and high-profile launch, Tesla continues to face challenges on the policy front. CEO Elon Musk has, on numerous occasions, criticised India’s high import duties, arguing that they render Tesla’s offerings too expensive for Indian consumers and limit the company’s potential in this critical market.
While Musk has pushed for tariff concessions, the Indian government has held its ground. Earlier this year, Commerce and Industry Minister Piyush Goyal made it clear that India would not design policies tailored specifically for Tesla, but instead would focus on creating a level playing field for all global EV manufacturers seeking entry into the Indian market.
Global Sales Slump Drives India Focus
Tesla’s pivot to India comes at a time when the company is grappling with declining sales in key markets like Europe and China. Industry analysts believe that India’s growing economy, rising urban middle class, and push towards electrification make it an attractive future growth engine for Tesla.
Despite the nascent size of India’s EV market — which currently accounts for just 4% of total automobile sales — the long-term potential is massive, especially as the government pushes towards net-zero emissions and incentives for EV adoption.
Looking Ahead: Tesla’s India Journey Begins
For now, Tesla’s presence in India will remain focused on luxury vehicle sales, showroom expansion, and service infrastructure. However, with strong backing from state leaders like Fadnavis, continued pressure from Indian consumers, and the lure of one of the world’s largest automobile markets, industry observers believe Tesla’s manufacturing ambitions in India may not be far off.
As Chief Minister Fadnavis aptly summed it up at the event:
“This is a good beginning — and it holds the power to transform the Indian automotive landscape.”