Tesla Launches Model Y in India at Over ₹60 Lakh Amid High Import Duties

Tesla has officially priced its first electric car in India, the popular Model Y SUV. Marking a momentous step into the world’s third largest automobile market. The base rear wheel drive variant is listed at ₹61.07 lakh, while the long range model carries a price tag of ₹69.15 lakh, a pricing strategy shaped by import duties and taxes.

Deliveries are anticipated to begin in the third quarter of this year, with initial units already arriving from the Shanghai Gigafactory. Five Model Y chassis have been spotted in Mumbai ahead of the first showroom opening, expected to be located in the Bandra-Kurla Complex.

Tesla’s arrival in India follows years of delicate negotiations, resulting in a fully imported (CBU) approach. This has led to steep pricing despite the global acclaim of the Model Y. In comparison, the same vehicle begins at $44,990 in the US and roughly €45,970 in Germany. India’s high duties, approximately 70% on fully built EVs below $40,000, significantly inflate MSRP.

Tesla wants to take over India's premium EV market, which makes up only 4% of all car sales, by focusing on wealthy, tech savvy consumers. Instead of low cost EVs from domestic producers, the Model Y will mainly compete with luxury German products.

At the Mumbai showroom launch, heavily guarded by police and attended by Maharashtra’s chief minister, the vehicle was unveiled behind opaque wraps, underscoring the brand’s signature minimalist aesthetic.

Tesla is also offering its Full Self Driving (FSD) package as a software upgrade priced at ₹6 lakh. While the system requires active supervision, it will evolve via over the air updates.

Commentators highlight that although the pricing limits Tesla’s access to India’s mass market, the launch is strategic, testing demand in urban centres like Mumbai and Delhi, with plans for further showrooms to follow. This high-end first approach of the company directly contrasts with the relatively low-cost first EV trend in India that is mainly driven by low-cost Evs. 

Hopefully, the entry of Tesla will enhance the EV market and make other mature companies improve their products. It also fits in with the government's new EV policies, which are meant to draw in foreign investment. Many industry insiders see this as a potential precursor to future localisation efforts, such as local assembly or even full scale manufacturing, though no official plans have been announced.

Moreover, it is known that Tesla has set one foot in the infrastructure construction by exporting Supercharger hardware prior to wider deployment. The company is planting initial roots of an effective charging ecosystem. 

Finally, Tesla introduced Model Y in India on 15 th July, where the base model starts at 61.07 lakh and the long-range model at 69.15 lakh. The brand is certain that its launch will appeal to luxury buyers and establish new standards in India's developing EV market, even though pricing reflects imported status and duties.