Mumbai, July 15, 2025 — American electric vehicle manufacturer Tesla has officially entered the Indian market with the launch of its popular electric SUV, the Model Y. The announcement was made on Tuesday, with bookings now open and deliveries expected to commence in the third quarter of the year.
The launch marks a long-awaited entry for the Elon Musk-led company into one of the world’s fastest-growing automotive markets. However, the pricing of the vehicle has raised eyebrows, as the Model Y is significantly more expensive in India compared to other global markets.
Pricing Raises Eyebrows
While the base variant of the Model Y is priced at $37,490 (approximately ₹31 lakh) in the United States, the same vehicle starts at ₹61.07 lakh (on-road) in India for the Standard Rear-Wheel Drive (RWD) version. The Long Range RWD model is priced even higher, at ₹69.15 lakh.
The steep pricing is primarily attributed to the vehicle being imported as a Completely Built Unit (CBU). According to industry reports, the Model Y is currently being manufactured at Tesla’s Gigafactory in China and shipped to India, which subjects it to high import duties and taxes. Additional costs include shipping charges and the lack of local subsidiesfor electric vehicles, all of which contribute to the inflated price tag.
No Local Production Yet
Tesla has not yet established a manufacturing or assembly facility in India. Experts suggest that unless the company sets up local production or the government revises import policies for electric vehicles, prices for Tesla models are likely to remain on the higher side.
Bookings Open, Deliveries Soon
Tesla has opened bookings for the Model Y with a non-refundable reservation fee of ₹22,000. Deliveries are expected to begin later this year, initially limited to Delhi, Gurugram, and Mumbai.
Performance and Features
The Model Y will be available in two battery variants for the Indian market:
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A 60 kWh LFP battery with a claimed range of up to 500 km
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A 75 kWh NMC battery offering a maximum range of 622 km
In terms of features, the electric SUV includes a rear-seat touchscreen interface, electrically adjustable rear seats, and premium cabin materials. Customers can choose from six exterior colors. Only the Stealth Grey option is included in the base price, while all other colors come at an additional cost.
Looking Ahead
Tesla’s entry into India comes amid growing interest in electric mobility and government efforts to boost EV adoption. However, the lack of local manufacturing and high upfront costs may prove to be challenges in gaining mass-market appeal.
Industry insiders believe that Tesla’s next move in India could involve negotiating with the government for more favorable import terms or announcing plans for a local factory, a move that could eventually bring prices down and enhance accessibility.
