MUMBAI: Tesla officially entered the Indian market on July 15 with the launch of its popular electric car, the Model Y, and the opening of its first retail location in the financial capital, Mumbai. The American electric carmaker has launched the Model Y in India at a starting price of Rs 59.89 lakh (ex-showroom).
The car is available only in Rear Wheel Drive (RWD) option. Price for the Model Y Long Range RWD has been kept at Rs 67.89 lakh. The electric car will initially be available in three cities - Mumbai, Delhi and Gurugram. Deliveries for the model will commence in the third quarter of the calendar year 2025.
As per sources, Tesla has started India operations by importing cars manufactured in its China facility. India prices are significantly higher than in other markets as prices for Model Y starts at Rs 38.6 lakh ($44,990) in the US, Rs 30.5 lakh in China (263,500 yuan), and Rs 46 lakh in Germany (€45,970). The higher prices in India are attributed to import duties and logistics costs. India imposes a 70% tariff on imported cars priced below $40,000.
Tesla’s first EV in India will compete against the likes of entry-level electric cars sold by German luxury automakers such as BMW and Mercedes-Benz. The Model Y RWD variant comes with a 60 kWh and a larger 75 kWh battery pack in the Indian market. The 60 kWh battery claims to deliver a WLTP range of 500 km on a single charge, while the long range variant claims 622 km.
Last month, Tesla India took on lease 24,565 square feet warehousing space in Lodha Logistics Park in Mumbai for five years. In June, Union Heavy Industries Minister H D Kumaraswamy stated that the Elon Musk-led company is not interested in manufacturing cars in India but keen on establishing showrooms in the country.
Earlier this year, Commerce and Industry Minister Piyush Goyal had stated that India will not tailor its policies to suit Tesla, and its laws and tariff rules will be formulated to attract all-electric vehicle manufacturers from across the globe to set up a base in the world's fastest-growing economy.
The statement by ministers came as Tesla, which has been exploring opportunities in the Indian market for years, did not show any interest in India’s new electric vehicle (EV) policy that lowers import duties on electric cars.