Mumbai, July 15, 2025 – Tesla has officially arrived in India, unveiling its first showroom in Mumbai’s Bandra-Kurla Complex and opening bookings for the popular Model Y SUV. The company has introduced two variants:
Model Y Rear-Wheel Drive (RWD) — Ex-showroom ₹59.89 lakh (≈ USD 70,000)
Model Y Long‑Range RWD — Ex-showroom ₹67.89 lakh (≈ USD 79,000)
Prices include high import duties—India imposes tariffs reaching over 100% on fully built EV imports—making this one of the costliest regions for the Model Y globally .
Strategic Launch Amid Indian EV Boom
Tesla joins a nascent Indian EV market, which currently accounts for around 2–4% of total vehicles sold . The company aims to tap into the premium EV segment, where it will face off against luxury automakers such as BMW, Mercedes, and Kia rather than domestic giants like Tata or Mahindra .
Delivery Begins in Q3 2025
Registered buyers in Mumbai, Delhi, and Gurugram can expect deliveries in the third quarter of 2025, with bookings already open via Tesla India’s website .
Despite Tariff Highs, Infrastructure Developments Continue
Tesla has started installing Superchargers at its Mumbai facility, with more units planned for Mumbai and New Delhi corridors . The company is also exploring additional showrooms, with a second expected soon in Delhi-NCR .
Full Self-Driving (FSD) Option Available
Tesla will offer its FSD suite for an extra ₹6 lakh, though regulatory approval and road readiness remain uncertain. India’s diverse traffic conditions may delay full utilization .
India’s High-Stakes Entry: What It Means
Tesla’s entry marks a symbolic and strategic milestone—India, the world’s third-largest auto market, could become a pivotal battleground in the global EV race. Even without local manufacturing, Tesla’s presence may spur policy changes, charging infrastructure growth, and heightened competition . Talks with the U.S. and Indian governments over tariff reductions continue, potentially paving the way for deeper investment.
Market Impact & Analysis
Tesla’s inaugural move prioritizes brand positioning over volume—this is unmistakably a luxury play. While the high price will confine the Model Y to a niche audience, Tesla’s entry could accelerate EV adoption, compelling rivals to enhance offerings.
However, local manufacturing remains crucial. Without it, Tesla may struggle to break out beyond the affluent segment in a price-sensitive market. For now, the focus is on building the ecosystem—showrooms, chargers, and customer experience.
Bottom Line: Tesla’s launch of the Model Y in India is a high-visibility debut at a premium price. It signals confidence in India’s EV future, even as questions remain around scale, affordability, and policy. This launch is as much about laying groundwork as it is about immediate sales.
