Earlier this month, we had reported the EV giant Tesla is finally making its entry into the Indian market. In this vein, the company has, on July 15, officially opened its maiden showroom in the country – in Mumbai’s Bandra Kurla Complex (BKC). This event marks the formal entry of the company into one of the world’s fastest growing EV markets.
Landing in India after several delays and still-to-be-ironed-out bottlenecks, the initial vehicle offered by Tesla in India is the Model Y sport utility vehicle (SUV). This model will be sold as a Completely Built Unit (CBU), indicating that it will be imported, likely from Tesla’s Gigafactory in Shanghai. Preparations for this launch included Tesla importing vehicles, superchargers, and accessories valued at approximately $1 million. These shipments originated primarily from China and the US. The imported inventory included six Model Y units.
The Model Y comes with Tesla’s own characteristic design, featuring a coupe-like profile, full LED lighting, and connected taillamps. The SUV measures 4,797mm in length, 1,982mm in width, and 1,624mm in height. It has a ground clearance of 167mm and is expected to be equipped with 19-inch wheels.
The vehicle’s interior presents a minimalist, dual-tone aesthetic. It includes a panoramic glass roof and integrated technology. A 15.4-inch central touchscreen manages most vehicle functions, while second-row occupants will have access to an 8-inch display. Features such as Autopilot and over-the-air software updates are anticipated to be included, though Autopilot’s operational performance under Indian road conditions remains to be seen and it already has a less-than-stellar performace in the US.
Tesla’s Model Y will be positioned within India’s premium EV segment. Expected pricing ranges from ₹50-75 lakh (ex-showroom), a range dependent on the variant and influenced by a 70% import duty applicable to CBUs. For context, the Model Y Long Range All-Wheel Drive (AWD) is priced at approximately ₹35.7 lakhs ($41,490) in the US, with the Rear-Wheel Drive (RWD) version at about ₹32.2 lakh ($37,490).
According to Reuters, the Model Y RWD is listed on Tesla’s Indian website at $69,765.82 for cash payments (₹6 million), while the Model Y Long Range RWD is priced at ₹6.8 million.
Similarly, the Model 3 is expected to be sold to Indian customers as well. While customers can place their orders now, shipping likely won’t begin till August.
The company is, in this vein, establishing an experience center in Mumbai. Tesla is also recruiting for sales and service positions in both Mumbai and Delhi. A second showroom is planned for Delhi, positioning Tesla within two of India’s largest automotive markets.
Operating as a CBU importer initially, Tesla faces high import duties, which will position its Model Y at a price point that places it in direct competition with established luxury automakers already present in India, such as BMW and Mercedes-Benz, rather than mass-market domestic EV manufacturers like Tata Motors or Mahindra. While immediate sales volume may not be substantial due to pricing and the nascent stage of India’s EV adoption (currently below 5% of total passenger vehicle sales), Tesla’s brand presence is expected to elevate consumer awareness and aspirations for high-end EVs.