Tesla rolls out Model Y in India, costlier than US, China and Germany

Tesla opens bookings for Model Y in India at up to ₹67.89 lakh due to high import duties, with first deliveries expected later in 2025 from Shanghai plant

On a rain-soaked Tuesday morning in Mumbai’s commercial hub, Bandra Kurla Complex (BKC), a large crowd of media personnel gathered outside American electric vehicle (EV) giant Tesla’s first Indian ‘Experience Centre’.

 

A middle-aged woman with her teenage daughter in a pink raincoat stood among curious onlookers outside the showroom. ‘I’ve been following news on Tesla and thought of dropping by since I was in the neighbourhood,’ she said, adding that the brand already enjoys strong recall in India for its driverless car technology. However, Tesla is not bringing its full self-driving (FSD) technology to India just yet.

 

Maharashtra’s Chief Minister Devendra Fadnavis emerged from the 4,000 sq. ft showroom displaying two Tesla Model Y cars—one white, one red. ‘Consider Maharashtra as a partner in your journey,’ said Fadnavis, expressing hope that Tesla would consider setting up R&D and manufacturing facilities in India. He recalled riding a Tesla vehicle in the US back in 2015.

 

Tesla opened bookings for the Model Y—billed as the world’s bestselling car in 2023 and 2024—at ₹59.89 lakh for the rear-wheel drive (RWD) version and ₹67.89 lakh for the long-range RWD. This makes it more expensive in India than in markets like the US (₹40 lakh), China (₹31.5 lakh), or even Germany (₹46 lakh), owing to import duties and shipping costs. India imposes tariffs of 70 to 110 per cent on fully built imported cars. The vehicles will initially be imported from Tesla’s Shanghai plant.

 

A second showroom is expected to open in New Delhi within a month. 

 

The company will begin deliveries of the Model Y RWD in late Q3 calendar 2025, and the Long Range RWD variant in Q4CY2025. Bookings can be made on the Tesla website for ₹22,000 or directly at the Mumbai showroom. Coincidentally, Vietnamese automaker VinFast also began bookings on Tuesday for its premium electric SUVs, the VF 6 and VF 7, with a ₹21,000 booking amount.

 

Fadnavis expressed confidence in Tesla’s success in India. ‘People in India are eagerly waiting for Tesla. I am sure you will find one of your best markets here once you start deliveries,’ he said.

 

Mahindra Group Chairman Anand Mahindra welcomed Tesla with a post on X (formerly Twitter): ‘Welcome to India, @elonmusk and @Tesla. One of the world’s largest EV opportunities just got more exciting. Competition drives innovation, and there’s plenty of road ahead. Looking forward to seeing you at the charging station.’

 

Tesla’s Model Y (500–622 km range, 0–100 km/h in 5.6–5.9 seconds, 15.4-inch touchscreen) faces stiff competition in India. Rivals include the BYD Seal Performance (₹53 lakh, 580 km range, 0–100 km/h in 3.8 seconds, 15.6-inch rotating screen, panoramic sunroof) and the Kia EV6, priced ₹60–65 lakh with a 708 km range. The Mercedes EQB is priced at around ₹72 lakh, and the BMW iX1 ranges from ₹50–65 lakh.

 

Tesla’s entry into India is widely seen as a move to offset slowing momentum in its key markets—the US and China. Chinese rival BYD is closing in, having sold 1.76 million EVs in 2024 compared to Tesla’s 1.79 million.

 

India holds promise, particularly in the luxury EV segment. According to VAHAN data, EVs accounted for 11 per cent of luxury vehicle sales between January–May 2025, up from 7 per cent during the same period in 2024—a 66 per cent year-on-year rise. However, luxury cars priced above ₹55–60 lakh still represent just around 1 per cent of the Indian passenger vehicle market, which ranks third globally.

 

Isabel Fan, Tesla’s Director for Southeast Asia, told reporters the company will set up 16 Supercharger stations and after-sales service centres in both Mumbai and Delhi. Each city will also have 15–16 slower destination chargers. Additionally, Tesla is offering free home charging installation for a limited period.

 

While India could emerge as a significant market for Tesla globally, the launch event in Mumbai was underwhelming. Unlike Apple’s 2023 BKC store launch, which saw CEO Tim Cook in attendance, Tesla’s CEO and co-founder Elon Musk was notably absent. The event was marred by poor organisation and confusion.

 

Several bystanders expressed disappointment at the high pricing. ‘I was eagerly waiting for the Tesla, but expected it would be priced around ₹30–35 lakh, similar to the US. I would have considered it alongside a Mahindra or Tata EV. But now, I’m not sure it lives up to the hype at this price,’ said a young banker working in the same complex.

 

Despite the mixed response, Tesla staff at the showroom said they were already seeing a spike in website traffic following the booking launch.