Tesla has entered India formally with the launch of its hit electric SUV, the Model Y. The price begins from Rs 60 lakh (ex-showroom), and it is the company's much-awaited foray into one of the globe's fastest-growing car markets.
The launch comes after months of speculation and government-level talks between Tesla chief Elon Musk and Indian authorities. The introduction places the Model Y as a luxury offering, head-to-head against high-end electric SUVs from Mercedes-Benz, BMW, and Audi that are already on sale in India.
First, Tesla will bring in the Model Y to India from its Berlin Gigafactory via a low-volume import channel. The units will be Fully Built Units (FBUs), which are charged a higher import tariff, in part accounting for the premium price tag.
Reports say Tesla is also exploring sites for a factory in India, with Maharashtra and Gujarat being the top contenders. A domestic factory would reduce prices substantially in the long run, making the Model Y more affordable to the masses.
The Indian-spec Model Y features dual-motor all-wheel drive and a claimed maximum range of 533 km (WLTP cycle). Tesla's typical minimalist interior, panoramic glass roof, and 15-inch infotainment touchscreen driven by Tesla's bespoke OS are also included.
Customers will get Autopilot features (although Full Self-Driving will only be available in the future), over-the-air (OTA) software update capability, and Tesla's strong battery management systems for long-term survivability.
Model Y also comes with fast-charging capability, with access to Tesla Superchargers anticipated in key metros from early 2026. In the meantime, the car will be compatible with India's current CCS2 charging network.
Tesla's move is well timed for India's electric vehicle market. The government is aggressively promoting the use of EVs through incentives such as FAME II and state-level subsidies. As demand increases, charging infrastructure has improved, and there is growing demand for luxury EVs, the timing for Tesla appears to be impeccable.
Industry observers assume that Tesla will introduce the Model 3 sedan next, and then more localized models will follow. Even a price reduction for the Model Y may be on the cards once local production starts. Meanwhile, Tesla's India presence should trigger increased competition and innovation in the premium EV segment.
Reservations for the Model Y are now available through Tesla India's official website, with production deliveries to start in October 2025.