Tesla Inc. has entered the Indian electric vehicle (EV) market with the launch of its Model Y SUV, but the debut has quickly sparked outrage among consumers and political leaders alike due to the vehicle’s steep pricing and Chinese manufacturing origin.
The Model Y, now listed on Tesla’s Indian website, is available in two variants — the standard Rear-Wheel Drive priced at Rs 59.89 lakh and the Long Range Rear-Wheel Drive at Rs 67.89 lakh.
These prices stand in stark contrast to the vehicle’s cost in the United States, where it is sold at $37,490 (roughly Rs 32 lakh) — after factoring in a $7,500 federal tax credit.
Shiv Sena (UBT) leader and Rajya Sabha MP Priyanka Chaturvedi took a dig at the Maharashtra government over the presence of chief minister Devendra Fadnavis at the launch of Tesla’s first showroom in India.
In a sharp critique posted on X, she wrote, “What are we celebrating? Entry of a glorified, highly taxed EV vehicle that is made in China? How is it contributing to India’s innovation industry? The white man complex is real.”
She went on to say, “And for Maharashtra CM to inaugurate a car showroom/dealer store makes it more cringe. What are we celebrating? Entry of a glorified, highly taxed EV vehicle that is made in China in India?”
The sharp disparity in pricing has led to an outpouring of frustration on social media, with many Indian users highlighting the excessive taxation burden.
One user pointed out that buyers in India are effectively paying Rs 29 lakh in taxes over and above the US price, stating, “Tesla has launched the Model Y in India at a price of Rs 61 lakh. This model gets sold at Rs 32 lakh ($37,490) in the USA and you will be paying tax of Rs 29 lakh to the government in India during the purchase. Thank you for your contribution in India’s growth story.”
Another user posted, “If you buy a #Tesla Model Y in India, you will pay around Rs 33 lakh to the company and ₹28 lakh to the Government as taxes. If this is not tax extortion, I do not know what it is.”
A third quipped, “Almost half of it is Tax. Instead of Tesla, it should be called ‘TAX-LA’ in India,” while another added, “#TeslaModelY price is doubled because of import duty and/or other taxes. Road tax insurance, GST, etc., will be added. Unless and until #Tesla starts manufacturing or at least assembling in #India, it won't be successful.”
The core reason behind this exorbitant pricing is India’s high import duty on completely built units (CBUs).
Tesla is currently importing assembled vehicles into the country, which subjects the Model Y to heavy tariffs.
A 100 per cent import duty is imposed on cars with a CIF (Cost, Insurance, Freight) value above $40,000, and a 70 per cent duty is applied to those priced below the threshold. This duty structure inflates the Model Y’s final cost, making it nearly twice as expensive as in Tesla’s home market.
