Tuesday, 15 July 2025
Tuesday, 15 July 2025
Global electric vehicle giant Tesla officially entered India on Tuesday with the launch of its Model Y priced at about $70,000, the highest price among major markets, and the opening of its first showroom at the Maker Maxity Commercial Complex in Bandra Kurla Complex (BKC), Mumbai.
The experience centre was inaugurated by Maharashtra Chief Minister Devendra Fadnavis, marking Tesla's long-awaited entry into the world's third-largest car market.
Deliveries of the Model Y, imported from Tesla’s China plant, are expected to begin in the third quarter of the year.
The vehicle will cater to India’s niche electric vehicle (EV) segment, which accounts for just 4 per cent of overall car sales. Tesla’s offering will compete with German luxury brands like BMW and Mercedes-Benz, rather than domestic players like Tata Motors and Mahindra.
For now, Tesla will import cars into India, where tariffs and related duties can exceed 100 per cent, significantly raising prices for consumers. Tesla CEO Elon Musk, who has long criticised India’s high import tariffs, has sought tariff concessions from the government to make the cars more affordable.
Speaking at the inauguration, Maharashtra Chief Minister Devendra Fadnavis invited Tesla to consider India not just as a sales market but also as a manufacturing base.
“In the future we wish to see R&D and manufacturing done in India, and I am sure at an appropriate stage Tesla will think about it,” he said. Fadnavis also emphasised the state's readiness to support Tesla, saying, “Consider Maharashtra as a partner in your journey.”
He added, “The inauguration of the Tesla Experience Centre is a statement that Tesla has arrived in the right city and in the right state — that is Mumbai and Maharashtra. Mumbai stands for innovation and sustainability.”
Fadnavis shared that he first experienced a Tesla in 2015 during a trip to the United States: “I thought then that we should have such mobility in India. It has taken almost 10 years, but we are very happy that you are finally here.”
Expressing optimism about Tesla's prospects in India, the CM said, “People in India are eagerly waiting for Tesla. I am sure you will find one of your best markets here once you start deliveries.”
Tesla’s Model Y rear-wheel drive is priced at around 6 million rupees ($70,000), while the long-range version costs approximately 6.8 million rupees. This compares to a starting price of $44,990 in the United States, 263,500 yuan ($36,700) in China, and 45,970 euros ($53,700) in Germany.
The Full Self-Driving (FSD) feature is available at an additional 600,000 rupees.
On Tuesday, police guarded Tesla's showroom as media gathered outside the office complex, with Fadnavis and other dignitaries present for the launch.
Industry sources said Tesla has already shipped its first batch of Model Y SUVs to India and recently leased 24,565 sq ft of warehouse space at Lodha Logistics Park in Mumbai to support its operations.
Union heavy industries minister H.D. Kumaraswamy recently said that while Tesla is not keen on manufacturing cars in India for now, it is focused on establishing showrooms and building its sales network.
Tesla’s Indian subsidiary, Tesla India Motors and Energy Pvt Ltd, received a trade certificate last week from Mumbai’s Regional Transport Office, allowing it to showcase vehicles, conduct test drives, and begin sales activities.
Globally, Tesla is facing declining sales in Europe and China and is betting on India as a potential growth market.
Despite lobbying efforts, India’s commerce and industry minister Piyush Goyal earlier this year stated that the government will not formulate policies specifically to suit Tesla’s needs.
Instead, India’s EV tariff and policy framework will be designed to attract all global EV manufacturers equally.
US President Donald Trump had earlier commented that if Tesla builds a factory in India to avoid tariffs, it would be "unfair" to the US.
As Tesla embarks on its India journey, Fadnavis summed up the state’s outlook: “This is a good beginning and has the potential to transform the market.”
With inputs from agencies
