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Priced at ₹59.9 lakh, India to be among the most expensive markets for Model Y

Thenewsdose.com

Mumbai/Chandigarh, July 15,UPDATED:2.10PM 
Tech billionaire Elon Musk’s Tesla has officially entered the Indian electric vehicle (EV) market, unveiling its Model Y SUV with a steep starting price of approximately USD 69,770 (around ₹59.9 lakh), the highest price point for the model globally. The announcement coincides with the opening of Tesla’s first showroom in India, located in Mumbai’s upscale area.

The base variant, Model Y Rear-Wheel Drive (RWD), is listed on Tesla’s website at ₹60 lakh, while the long-range RWD version is priced at ₹68 lakh. Bookings are now open with a refundable deposit of ₹22,220. Deliveries are expected to commence in the third quarter of 2025.

India: Among the Costliest Markets for Tesla

In comparison to other major markets, the Indian price tag for Model Y is significantly higher:

• United States: Starting at $44,990 (₹37.2 lakh)

• China: Priced at 263,500 yuan (≈$36,700 or ₹30.4 lakh)

• Germany: Starts at €45,970 (≈$53,700 or ₹44.3 lakh)

The inflated Indian pricing is attributed to high import duties and levies, which Tesla is currently absorbing under its imported car strategy. Import tariffs for fully built units (CBUs) in India can go up to 70%, contributing heavily to the steep on-road costs.

Targeting Premium EV Segment, Not Mass Market

Tesla’s India debut marks its entry into a niche but rapidly growing premium EV segment, which currently makes up about 4% of total EV sales in the world’s third-largest automobile market. Rather than competing with domestic EV players like Tata Motors or Mahindra, Tesla will position itself against German luxury automakers such as BMW and Mercedes-Benz, both of which have already launched high-end electric SUVs in India.

The company is reportedly betting on India’s wealthy urban consumers, who are already familiar with Tesla’s brand and are willing to pay a premium for its cutting-edge technology, minimalist design, and global reputation.

First Showroom: A Quiet Yet Strategic Launch

Tesla’s Mumbai showroom, designed in its signature neutral and minimalist aesthetic, offers a sleek preview of the brand’s global visual language. The Model Y was displayed draped under black and grey covers, visible through glass partitions, though public access was restricted during the preview phase. Notably, there were no crowds or fanfare—marking a low-key entry for one of the world’s most valuable car brands.

Advanced Tech on Offer, But Full Autonomy Still Distant

Tesla is also offering its much-hyped Full Self-Driving (FSD) capability in India at an additional cost of ₹6 lakh. However, the system is not yet fully autonomous. It currently requires active driver supervision and is more of an advanced driver-assist suite than a true self-driving feature. Tesla has claimed that future upgrades will be delivered over-the-air, gradually enabling more autonomous functionality.

Global Challenges, Local Strategy

With excess production capacity at several of its international factories and slowing global sales, Tesla’s India strategy appears to be part of a broader diversification plan. Instead of setting up manufacturing right away, Tesla is testing the waters with CBUs—despite the cost disadvantage—possibly as a precursor to future investments in domestic assembly, contingent on policy incentives and demand.

While India remains a tough market to crack due to its price-sensitive nature and underdeveloped EV infrastructure, Tesla’s arrival is expected to give a boost to the premium EV space and push local stakeholders to upgrade charging networks and urban EV readiness.

Outlook

Tesla’s high-stakes India debut—with premium pricing, luxury positioning, and a tech-first narrative—signals a long-term bet on evolving consumer aspirations and infrastructure. If the Model Y garners traction despite its steep cost, it may pave the way for broader Tesla operations in India, including local assembly and more accessible models in the future.