Tesla Launches $70,000 Model Y in India, Navigates Steep Import Tariffs
MUMBAI, July 15 (Reuters) — Tesla officially entered the Indian market on Tuesday, launching its Model Y electric SUV with prices starting at around $70,000. This marks a significant premium compared to Tesla’s pricing in other major markets, driven largely by India’s high tariffs on imported electric vehicles, which can exceed 100%. The launch highlights Tesla’s cautious approach to India, focusing on a niche luxury segment amid challenges such as import duties and infrastructure limitations.
Tesla’s Model Y rear-wheel-drive variant is priced at about 6 million rupees ($70,000), while the long-range rear-wheel-drive version costs approximately 6.8 million rupees. These prices include import tariffs and additional state levies, but Tesla’s website does not provide a detailed price breakdown. For comparison, the Model Y starts at $44,990 in the U.S., $36,700 in China, and $53,700 in Germany.
Tesla opened its first showroom in Mumbai, where customers can place orders online. The company plans to begin deliveries in the third quarter and aims to build an ecosystem supporting electric mobility, including installing superchargers in Mumbai and the Delhi region. At the launch event, Tesla displayed two China-made Model Ys and showcased its supercharger technology, which will be installed at eight locations in Mumbai and nearby areas.
Tesla’s regional director, Isabel Fan, said, “We are building from 0 to 100. It will take time to cover the whole country.” Tesla is entering a market where electric vehicles account for only 4% of overall car sales, targeting luxury buyers rather than competing directly with domestic mass-market EV players like Tata Motors and Mahindra.
Despite lobbying efforts, Tesla is yet to secure reduced import tariffs, and India’s preference for right-hand drive vehicles poses an additional challenge since Tesla’s U.S. factories currently do not produce such models. Furthermore, India’s developing road infrastructure, limited EV charging network, and traffic conditions remain hurdles to widespread EV adoption.
Tesla’s Full Self-Driving feature is available for an extra 600,000 rupees but requires active driver supervision and does not offer full autonomy. As Tesla steps cautiously into the Indian market, the company balances high tariffs and infrastructure challenges while hoping to capture demand in the country’s emerging luxury EV segment.
