Tesla has begun offering its Model Y electric vehicles in India, listing the rear-wheel drive version at a starting price of 6 million rupees ($69,770) on its website, ahead of the opening of its first showroom in Mumbai.
India, the world’s third-largest car market, currently sees electric vehicles account for just 4% of total car sales. The high entry price, limited public charging infrastructure, and dominance of internal combustion engine vehicles remain barriers to wider EV adoption. Tesla’s entry signals a push to tap into the country’s wealthier urban consumers, who have increasingly turned to premium goods and luxury vehicles.
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The launch sets Tesla on a competitive path against German brands BMW and Mercedes-Benz in India’s high-end EV segment. Local mass-market players such as Tata Motors and Mahindra, which dominate affordable EV offerings, will be less directly affected by the Model Y’s high price bracket.
Tesla is offering two versions of the Model Y in India: the base rear-wheel drive variant for 6 million rupees ($70,000) and the long-range version for 6.8 million rupees ($79,000). These prices are significantly higher than those in the United States, China, and Germany, where the Model Y starts at $44,990, $36,700, and $53,700 respectively.
The Mumbai showroom was under tight security on Tuesday, with the Model Y on display partially visible through a glass facade. While public access was restricted, the brand’s presence marked a long-anticipated milestone for Tesla CEO Elon Musk, who has previously expressed interest in establishing operations in India.
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India’s government aims to increase EV penetration to 30% of all car sales by 2030, offering tax incentives for foreign automakers that commit to local manufacturing. While these policies were in part designed to attract Tesla, the company has yet to confirm any production plans within the country.