Tesla debuts in India with $79,000 Model Y

Tesla just planted its flag in India. The company opened its first showroom in Mumbai’s Bandra Kurla Complex, a high-end business district that hosts global banks and luxury brands. The 4,000 square foot space is leased for ₹23.38 crore over five years, making it the most expensive showroom lease in the country. This isn’t just a retail launch. It’s a signal. Tesla is entering the world’s third-largest auto market with premium pricing, imported inventory, and no manufacturing footprint yet.

The Model Y is the spearhead. Tesla shipped six units from its Shanghai plant ahead of the launch. The rear-wheel drive version is priced at ₹61,07,190. The long-range variant hits ₹69,15,190. That’s $70,000 to $79,000. In the U.S., the same car sells for $44,990. The gap is import duty. India charges up to 100% on foreign EVs. A new policy rolled out in March 2024 offers a reduced 15% duty for EVs priced above $35,000, but only if the automaker commits ₹4,150 crore in local manufacturing within three years. Tesla hasn’t committed.

The showroom is just the start. A second location in New Delhi is expected by the end of July. Tesla has also leased warehouse space and a co-working office near BKC. Four charging stations are being built across Mumbai. The company is hiring for sales, service, and supply chain roles. Deliveries of the Model Y are expected to begin in Q3. The cars will be imported as completely built units. No local assembly. No factory. Just a direct-to-consumer model and a high-end footprint.

India’s EV market is small but growing. Electric vehicles made up just 2.3% of total car sales in 2024. The government wants that number at 30% by 2030. Luxury cars account for only 1% of total sales. Tesla’s pricing puts it in competition with BMW and Mercedes, not Tata or Mahindra. The company is betting on brand power and early adopters. Maharashtra Chief Minister Devendra Fadnavis called the launch “a statement that Tesla has arrived in the right city and right state.”

Tesla’s global sales fell sharply from April to June. Boycotts over Elon Musk’s political views hit demand in the U.S. and China. India offers a fresh lane. But the road is narrow. Without local production, Tesla’s pricing will remain steep. Without broader infrastructure, adoption will be slow. The Mumbai showroom is a beachhead. The real test is whether Tesla can scale in a market built on affordability.