Tesla has officially entered the Indian car market with the launch of its Model Y SUV, priced at Rs 59.89 lakh. Maharashtra is actively courting Tesla, urging them to establish manufacturing and R&D facilities in the state, offering incentives and a supportive EV policy. Initially, sales will begin in Mumbai, followed by Delhi and Gurugram, with deliveries starting in September.
made a strong pitch to the Elon Musk-led automaker, positioning the state as Tesla’s long-term base. “Mumbai and the people of India are going to love Tesla. But more than just being a big market, India is now a robust base for electric mobility manufacturing, especially Maharashtra. We invite Tesla to not just sell here, but to make it here,” he said.
Fadnavis highlighted the state’s “most progressive” EV policies, with incentives for manufacturing, R&D, and charging infrastructure. Tesla, which has begun hiring for roles in charging infrastructure and government affairs, will initially sell its cars in Mumbai, with Delhi and Gurugram set to follow as its next retail markets.
Model Y marks Tesla’s first official product introduction in India after years of flipflop on entering the world’s third-largest automobile market. The car is priced significantly higher than in markets like the US due to the 70-100% import duty levied on fully-built electric vehicles in India. Deliveries will begin in September, with imports currently routed through Tesla’s Shanghai Gigafactory.
Tesla is targeting India’s luxury EV segment which is still in its infancy but gaining traction. With a price tag going up to Rs 67.89 lakh for the long range, rear wheel drive version, Model Y will compete with premium offerings from BMW and Mercedes-Benz rather than mass-market brands like Tata Motors and Mahindra & Mahindra. BMW currently leads the segment with EVs accounting for 18% of its total sales. EVs currently have a 12% penetration in the luxury car segment.
Industry watchers view Tesla’s move as a cautious toe-dip into a complex market. “Considering that there is no trade agreement, this is aggressive pricing. Tesla’s India narrative may change when bilateral trade agreements with the US or Europe are in place,” said Puneet Gupta, director, S&P Global Mobility. “For now, they are testing the waters.”
Tesla will also roll out its latest V4 Superchargers in India before vehicle deliveries begin. The first four charging hubs in Mumbai—at Lower Parel, BKC, Navi Mumbai, and Thane—will each house 16 Superchargers and 16 Destination Chargers. Every customer will receive a complimentary home wall charger with their purchase.
"We are here to create the ecosystem, to invest in the necessary infrastructure including the charging infrastructure," Isabel Fan, a regional director at Tesla, said at the launch event. “We are building from 0 to 100. It will take time to cover the whole country.”
Globally, Tesla is under pressure. Sales have dipped in key markets such as Germany and France, while China has become intensely competitive amid domestic EV rivals.
While Tesla has not confirmed any manufacturing commitments in India yet, industry insiders believe the company could transition to local assembly and eventually full-scale manufacturing, in phases. “Tesla is not just entering a market—it’s entering a partnership with a state and a nation committed to clean mobility,” Fadnavis said.
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