Elon Musk’s electric vehicle giant, Tesla, commenced sales of its Model Y cars in India on Tuesday, with prices starting at approximately $69,770, as indicated on its official website. This launch comes as the company prepares to inaugurate its first showroom in Mumbai, India’s bustling financial hub.
India currently stands as the world’s third-largest automotive market, though electric vehicles constitute a relatively small segment. Concerns regarding the easy accessibility of charging infrastructure remain a significant deterrent for many affluent buyers considering a switch to electric.
As Tesla gears up to navigate India’s busy roads, still predominantly populated by diesel and petrol-fueled cars, it will primarily compete head-to-head with established German luxury automotive brands such as BMW and Mercedes-Benz within the premium EV segment. India’s mass-market electric vehicle players include domestic giants like Tata Motors and Mahindra.
On Tuesday, police secured the premises of the new showroom, where the brand’s name, etched in black against a stark white wall, was prominently visible. Through the glass facade of a gated office complex, the Model Y, draped in black and grey covers, was partially discernible. Access was tightly controlled, resulting in few onlookers or curious fans lingering near the site.
Musk has long expressed interest in entering the Indian market, the world’s most populous nation, where the wealthy are increasingly indulging in luxury purchases ranging from high-end apartments to watches, jewelry, and even bespoke bathroom fittings.
India’s government aims to significantly boost the share of electric vehicles in domestic car sales to 30% by 2030, a substantial increase from the current 4%. To achieve this, tax cuts are being offered to foreign automakers who commit to a degree of domestic production. While these efforts were partly designed to entice Tesla, their appeal to Musk has proven to be limited.
Tesla’s entry into the Indian market coincides with a pre-booking campaign launched by Vinfast for its electric sports utility vehicles, the VF7 and VF6. Tesla is offering the Model Y Rear-Wheel Drive for 6 million rupees (equivalent to $70,000) for cash purchases, and its Model Y Long-Range Rear-Wheel Drive for 6.8 million rupees (approximately $79,000). For comparison, the U.S. selling price for the Model Y starts from $44,990, while in China it is 263,500 yuan ($36,700), and in Germany, it begins at 45,970 euros ($53,700).
