Tesla Launches in India: Luxury Model Y Debuts at Rs.67 Lakh
Tesla has officially launched in India with the Model Y, starting at Rs 59.9 lakh. While EV fans are thrilled, the price, almost double the U.S. rate, has raised questions.
Tesla made its official debut in India on 15 July 2025 by opening its first showroom and Experience Center in Mumbai’s Bandra Kurla Complex, unveiling the Model?Y in two variants. The event, attended by Maharashtra’s Chief Minister and Transport Minister, marked a major moment for India’s electric vehicle (EV) landscape. Tesla, known globally for its innovative EVs, clean energy products, and extensive fast-charging network, has brought high expectations—but also challenges. The Model?Y is priced between ?59.9 lakh and ?67.9 lakh in India, nearly double its U.S. price due to high import tariffs (around 70%) and luxury taxes (around 30%). This positions Tesla firmly in the premium segment, competing with luxury brands like BMW and Mercedes.
Despite the high cost, Tesla’s entry is seen as a milestone. The company is valued for its zero-emission vehicles, advanced battery technology, safety features, and Full Self-Driving (FSD) system—though FSD is not yet legal or available in India. Tesla imported the Model?Y from China, and discussions are ongoing about reducing tariffs if the company commits to local manufacturing. If Tesla invests over $500 million and sets up a factory within three years, duties could drop to 15%. So far, no local partner has been announced, but talks with policymakers are active.
Public and media response has been mixed. While many hailed it as a landmark moment for India’s EV future, others criticized the pricing, nicknaming the brand “TAX?LA” due to the high taxes. Industry leaders like Anand Mahindra welcomed the competition, and consulting firm EY called it a big boost for EV infrastructure. Tesla now plans to install Superchargers in Mumbai and Delhi, and expand showrooms, with the second one coming soon in Delhi NCR. Its long-term success in India depends on clearer policies, strong infrastructure, local production, and making its cars more affordable to the wider Indian market.
