On August 11, 2025, Tesla formally opened its second dealership in India at Worldmark 3, Aerocity, New Delhi. The well-liked Model Y electric SUV, which is available in two versions—Rear-Wheel Drive (RWD) and Long Range RWD—will be on display at the new Tesla dealership in Delhi. This development comes after last month’s opening of Tesla’s first Indian store in Mumbai’s Bandra Kurla Complex.
Tesla Model Y India Price and Variants
The Long Range RWD variant costs Rs 67.89 lakh (ex-showroom), while the basic Rear-Wheel Drive (RWD) model costs Rs 59.89 lakh (ex-showroom). The third quarter of 2025 is anticipated to see the start of deliveries for both.
Performance, Range, and Battery Specs of Model Y
The Model Y basic RWD can accelerate from 0 to 100 kmph in 5.9 seconds and has a stated driving range of 500 km on a full charge. The Long Range RWD accelerates from 0 to 100 kmph in 5.6 seconds and extends the range to 622 km. The maximum speed for both is 201 kmph.
Business Operations of Delhi Unit
Under a nine-year contract, Tesla has secured around 8,200 square feet of space at Worldmark 3 for the Aerocity showroom. According to reports, the lease starts at INR 17.22 lakh a month, with rate increases planned every three years. The space in Mumbai is roughly 4,000 square feet.
The New Delhi Experience Centre will serve as a venue for both client interaction and display. Prospective customers will be able to see Tesla cars, read through the specs, and look into charging and buying possibilities. The launch of the Delhi showroom, according to industry observers, is a step towards Tesla’s goal of growing its retail network throughout important Indian cities.
Tesla’s Retail Expansion Plans in India
As part of its India plan, the corporation is anticipated to open additional showrooms and service locations. The Model Y is imported by Tesla as a completely constructed unit (CBU) into India. It is one of the more expensive EVs in the Indian market since import taxes almost quadruple the retail price when compared to international markets.
Impact on Tesla’s Global Sales Strategy
At a time when its sales in China and Europe are declining, Tesla is making its debut in the Indian market with the vehicle Y as its flagship vehicle. The business reportedly transported its first shipment of Model Y rear-wheel drive SUVs to India from its China plant.
Additionally, before deliveries start, the business plans to deploy superchargers in India. It would initially concentrate on Mumbai and Delhi.
Battery packs are available for the Tesla Model Y rear-wheel-drive variant in India: a 60 kWh and a larger 75 kWh model. One electric motor producing 295 horsepower powers this RWD model. With a full charge, the 60 kWh battery is supposed to have a WLTP range of 500 km, whilst the long-range model promises a range of 622 km.
Quick
Shots
•Tesla
opened its second dealership in India on August 11, 2025 at Worldmark 3,
Aerocity
In an effort to capitalise on the expanding Indian market for electric vehicles, Vietnamese manufacturer VinFast launched its first showroom in India on 27 July in Surat, Gujarat. The company’s electric SUV models VF 6 and VF 7, which will be introduced as right-hand drive versions for the first time, will be on display in the showroom.
The vehicles will be domestically produced at VinFast’s planned facility in Thoothukudi, Tamil Nadu, the company announced in an official release, reaffirming its long-term commitment to India as a strategic market and future centre for the manufacturing of electric vehicles. By the end of the year, VinFast intends to open 35 dealerships in more than 27 locations nationwide.
VF 6 and VF 7 Reservations Now Open
The store, which is situated in the Piplod neighbourhood of Surat, will display the brand’s next high-end electric SUVs, the VF 6 and VF 7, for which reservations went on sale on July 15. “With a fully refundable deposit of INR 21,000, customers can reserve their vehicle at showrooms or online through VinFastAuto.in,” the announcement stated.
The first VinFast showroom in Surat, according to VinFast Asia CEO Pham Sanh Chau, is a testament to the company’s strong ties to India. The company is thrilled to introduce Indian customers to the VinFast experience.
The goal of this Gujarati dealership is to provide not only electric cars but also a whole ownership experience based on excellence in service and quality trust. In order to offer charging and after-sales services throughout India, the Vietnamese EV manufacturer has partnered with RoadGrid, myTVS, and Global Assure.
To further demonstrate its dedication to sustainable innovation, the business has partnered with BatX Energies to develop a circular battery value chain and encourage battery recycling.
Tesla Targets Indian EV Market with Model Y
With a starting price of INR 59.89 lakh and its first showroom in Mumbai, Elon Musk’s Tesla introduced the Model Y to the Indian market earlier this month. The Model Y will be imported by Tesla as a fully constructed unit (CBU) from its Chinese manufacturing plant in Shanghai.
At a time when its sales in China and Europe are declining, Tesla is making its debut in the Indian market with the vehicle Y as its flagship vehicle. The business reportedly transported its first shipment of Model Y rear-wheel drive SUVs to India from its China plant.
Additionally, before deliveries start, the business plans to deploy superchargers in India. It would initially concentrate on Mumbai and Delhi.
Battery packs are available for the Tesla Model Y rear-wheel-drive variant in India: a 60 kWh and a larger 75 kWh model. One electric motor producing 295 horsepower powers this RWD model. With a full charge, the 60 kWh battery is supposed to have a WLTP range of 500 km, whilst the long-range model promises a range of 622 km.
With the launch of its first dealership in Mumbai’s Bandra Kurla Complex, Tesla has made its debut in the Indian market. The Model Y, which will be priced at INR 59.89 lakh for the entry-level RWD form and INR 67.89 lakh for the long-range variant, will serve as the brand’s representation in the nation.
In the meantime, the car costs INR 61.07 lakh and INR 69.15 lakh on the road, respectively. In the US, the Model Y costs $46,630, or roughly INR 40.01 lakh; in China, it costs 263,500 yuan, or roughly INR 31.57 lakh; and in Germany, it costs 45,970 euros, or roughly INR 46.09 lakh.
Because of import taxes and delivery charges, the Indian edition is therefore among the priciest. because the model is offered for sale in the nation as fully constructed units (CBUs). As a result, Indian consumers are experiencing inflation.
Tesla’s Sales Hit Low in China and Europe
At a time when its sales in China and Europe are declining, Tesla is making its debut in the Indian market with the vehicle Y as its flagship vehicle. The business reportedly transported its first shipment of Model Y rear-wheel drive SUVs to India from its China plant.
Additionally, before deliveries start, the business plans to deploy superchargers in India. It would initially concentrate on Mumbai and Delhi.
Battery packs are available for the Tesla Model Y rear-wheel-drive variant in India: a 60 kWh and a larger 75 kWh model. One electric motor producing 295 horsepower powers this RWD model. With a full charge, the 60 kWh battery is supposed to have a WLTP range of 500 km, whilst the long-range model promises a range of 622 km.
Indian Government Assures No Special Treatment
Piyush Goyal, the minister of commerce and industry, reiterated earlier this year that India will not create policies specifically for any one business.
Rather, the government wants to construct a wide framework that will entice international EV manufacturers to set up production facilities in India, which is currently the largest economy with the highest rate of growth in the world.
In order to lessen carbon emissions and the nation’s significant reliance on oil imports, Goyal also underlined the government’s dedication to developing a strong EV ecosystem. The Tesla Model Y will come with two interior trim options and seven exterior colour options in India.
The car also has a fixed glass roof, a motorised tailboard, dual-zone climate control, power-adjustable front seats and steering column, a 15.4-inch touchscreen screen in front, an 8-inch display for the backseaters, and 19-inch crossflow wheels.
According to a media agency, Heavy Industries Minister H D Kumaraswamy stated on 2 June that Tesla has no plans to produce electric cars in India anytime soon. Although local production is not currently in Tesla’s plans, the company is getting ready for a market debut.
According to reports, Tesla is not currently exploring local manufacturing, even though it has finalised a showroom space in Mumbai’s Bandra Kurla Complex and hired more than two dozen employees in India, including store managers and service professionals.
The company is anticipated to launch its first vehicle in the market within the next two to three months after starting the certification and homologation procedure to sell its EVs in India.
India Carving Attractive EV Policy to Allure International Players
In an effort to draw in big companies like Tesla, India launched a flagship EV policy in March 2024 that offered lower import taxes in return for manufacturing commitments.
Companies that invest at least INR 4,150 crore (about $500 million) to start local manufacture within three years are eligible to import up to 8,000 EVs per year at a drastically reduced charge of 15% under the proposal.
The programme is anticipated to start for applications shortly and run through March 15, 2026. The goal of the policy is to establish India, the third-largest automobile market in the world, as a major location for EV investments.
India is still interested in EVs even though demand for them is slowing down globally. A minimum revenue criterion of INR 5,000 crore in the fourth year and INR 7,500 crore in the fifth year has been introduced by the Indian government, which has lately tightened eligibility requirements under the scheme. Businesses that fall short of these goals risk fines of up to 3% of the revenue deficit.
Tesla’s Challenges in the Indian Market
By generating EVs, batteries, and charging systems domestically, Tesla’s gigafactories might strengthen India’s IT and manufacturing industries. Tesla must first gain acceptance, which is not without its difficulties. Given India’s dealer-centric market, their direct sales strategy might need to be modified.
A crucial component, after-sales service, must be strong. Pricing is another issue; the majority of passenger cars in India are under INR 20 lakh, indicating that the country is price sensitive.
Even before taxes are applied, the least expensive Model 3 costs $42,490 in the US (about INR 37 lakh), putting it squarely in the luxury market in India.
Tesla would need to provide more value-driven products and better prices than even China if it hopes to have more than a modest presence in India. As EV penetration keeps rising, experts believe India is prepared for more players.
Additionally, less than 3% of all passenger vehicle sales in India are electric, indicating a low level of EV adoption. However, from 5,000 units in 2020 to over 113,000 in 2024, sales have increased significantly, according to a media report.
Tesla Inc., the renowned electric vehicle manufacturer, is nearing an agreement with the Indian government that would allow the company to import its vehicles into the country starting next year and establish a manufacturing plant within the next two years, according to sources familiar with the discussions.
Potential Timeline and Location for Tesla’s Indian Operations
An official announcement of this collaboration is expected to be made at the Vibrant Gujarat Global Summit in January 2024. The Indian government has identified three potential locations for Tesla’s manufacturing plant: Gujarat, Maharashtra, and Tamil Nadu. These states have well-established ecosystems for electric vehicle production and export capabilities.
Investment and Procurement Plans
Tesla is anticipated to make an initial investment of approximately $2 billion in the proposed plant. The company also intends to significantly increase its procurement of auto parts from India, aiming to reach a value of $15 billion. To reduce costs, Tesla plans to manufacture some batteries in India as well.
Discussions and Opportunities
While these plans are not yet finalized, the possibility of changes remains. Elon Musk, Tesla’s CEO, previously announced in June 2023 that the company plans to make a “significant investment” in India and expressed his intention to visit the country in 2024.
Entering India’s vast market, with its growing demand for electric vehicles among the aspiring middle class, would be a significant opportunity for Tesla. The Indian government, under Prime Minister Modi, has been actively promoting domestic manufacturing of electric vehicles and encouraging the rapid adoption of cleaner transportation.
Challenges in the Indian EV Market
Despite these efforts, the electric vehicle market in India has not witnessed substantial growth. Battery-powered cars constituted only 1.3% of the total passenger vehicles sold in India last year. Consumers remain hesitant to switch to electric cars due to the high upfront costs and a lack of charging infrastructure.
Tesla’s Pricing Strategy and Import Duties
Tesla currently does not directly import cars into India due to the high import tariffs imposed. When locally manufactured Tesla cars become available for sale, they could be priced as low as $20,000, according to some sources.
Trade Minister’s Visit and Tesla’s Procurement Plans
Trade Minister Piyush Goyal, who visited Tesla’s plant in Fremont, California, stated in September 2023 that Tesla plans to nearly double its purchases of auto parts from India to $1.9 billion this year. Last year, the electric carmaker sourced parts worth $1 billion from India.
Resumption of Discussions and Potential Tax Relief
Tesla’s interactions with India resumed in May 2023 after a year-long impasse. There are now discussions about potentially lowering import taxes for international electric vehicle manufacturers for five years if they commit to establishing local factories.
Tesla’s Ambitions to Become India’s Third-Largest Car Manufacturer
Tesla is gearing up to introduce a comprehensive range of electric vehicles and establish a robust charging infrastructure in India on a large scale. The company aims to offer electric vehicles at a competitive price range, with specific pricing details yet to be finalized.
Gigafactory Location and Government Support
Should Tesla’s proposed plans materialize, the company is poised to become India’s third-largest car manufacturer, following Maruti and Hyundai. Ongoing discussions between Tesla and Indian government officials will delve into localization strategies, including the identification of a suitable location for the gigafactory.
Production Linked Incentive Scheme and FAME 3 Scheme
There are indications that India may consider implementing a second phase of the Production Linked Incentive scheme to provide support to Tesla. Government officials are also engaged in talks with the industry to explore the expansion of the FAME 3 scheme, considering that the FAME 2 scheme is scheduled to conclude in March 2024.
Market Share of Electric Vehicles in India in 2022 With Estimates Up to 2030
India’s Electric Vehicle Revolution Propelled by Affordable $10,000 Cars
India’s electric vehicle (EV) market is witnessing a remarkable surge, fueled by the introduction of cost-effective new models. Sales of passenger EVs in the country have soared to an impressive 75,000 units in the nine months leading up to September, representing a more than twofold increase from the same period last year.
While EVs still account for a modest 2.4% of the total market share, a closer examination of the underlying trends reveals a crucial insight for EV manufacturers seeking to penetrate the Indian market: An astounding 86% of all-electric cars sold this year were priced under $20,000.
This surge in demand is attributed to the introduction of several new models this year, including the most affordable option, MG’s Comet mini car, priced at less than $10,000. Tata Motors’ popular Tiago compact EV, which accounts for 39% of EV shipments, retails for around $10,500, with deliveries commencing earlier this year.
India’s EV Market Sales With Estimates Up to 2030
Dominance of Affordable Small Cars and Compact SUVs
An analysis of statistics across all drivetrains further underscores the dominance of affordable small cars and compact SUVs. Approximately 69% of cars sold in India last year were priced below $15,000, with 27% costing less than $10,000. Even top-selling combustion-engine models like Suzuki’s Swift and Wagon R retail for under $8,000.
By offering EVs at comparable prices, automakers have successfully tapped into demand from private customers, particularly those commuting in India’s urban centers. The growing popularity of battery-powered cars among ride-hailing and taxi companies is also driven by their low operating costs.
This surge in demand has prompted significant commitments from automakers to increase local EV production, with nearly $5.4 billion in investments pledged to establish or expand EV manufacturing facilities in India, as reported by BloombergNEF. These commitments come from both domestic players such as Tata Motors and Mahindra & Mahindra, as well as international players like Hyundai, Kia, and Vietnamese EV startup VinFast.
While promises to establish local battery plants are also on the rise, supported by government subsidies, one aspect of India’s EV ecosystem that lacks concerted efforts, particularly from private companies, is the charging network. Most public charging stations are currently concentrated in major cities like Delhi, Mumbai, and Bengaluru, with many designed to support electric two- and three-wheelers. To fully accelerate the next phase of EV adoption, more comprehensive efforts are needed to expand the charging infrastructure across the country.
Hailed as one of the world’s most valuable companies, Tesla Inc., is currently the world’s most valuable automaker as well. An American multinational headquartered in Austin, Texas it functions in the automotive, artificial intelligence, and clean energy space. Tesla’s product repertoire boasts of designing and manufacturing electric vehicles (cars & trucks), battery energy storage (home to grid-scale), solar panels and solar roof tiles, and related products and services. In the year 2021, Tesla Inc. recorded the most worldwide sales capturing 21% of the battery-electric market and 14% of the plug-in market. Tesla Energy, a subsidiary of Tesla Inc., develops and installs photovoltaic systems in the US. The company is also one of the largest global suppliers of battery energy storage systems.
The company was incorporated as Tesla Motors, Inc., on July 1, 2003, by Martin Eberhard and Marc Tarpenning, who also served as CEO and CFO respectively. It was Eberhard’s vision to build a car manufacturer that was also a technology company with its core technologies as the battery, computer software, and proprietary motor. Their third employee, Ian Wright, joined the team a few months later. It was in February 2004 when the company raised USD 7.5 million in Series A funding that included USD 6.5 million from the enigmatic Elon Musk. With the highest amount contributed, Musk assumed the position of Chairman of the Board of Directors as he became the largest shareholder of Tesla. A couple of months later, by May 2004, J.B. Straubel joined the company as the Chief Technical Officer.
It was in September 2009 that a lawsuit agreement by Eberhard and Tesla allowed all five – Martin Eberhard, Marc Tarpenning, Ian Wright, Elon Musk, and J.B. Straubel, to call themselves the co-founders of Tesla Motors Inc.
Tesla’s Products and Expansion
The first car that Tesla officially revealed to the public was the Roadster in July 2006 and began its production in 2008. Two years later, the company purchased the Tesla Factory in Fremont from Toyota for USD 42 million. This was to begin the production of their new offering – Model S. In June of the same year, Tesla Inc. also went public through its IPO on NASDAQ. Tesla launched its second car, the Model S luxury sedan in June 2012 which went on to become the first electric car to top the monthly sales ranking within the country.
By the year 2015, Tesla entered the energy storage market and unveiled Tesla Powerwall and Tesla Powerpack battery packs. By September of the same year, the company also began shipping its third vehicle – Tesla Model X, the luxury SUV.
Tesla acquired SolarCity and entered the photovoltaics market in November 2016 and changed its name to Tesla Inc., in February 2017 to reflect on its expanding business. In 2017, the company also began selling its fourth vehicle model called the Model 3 sedan, which became the world’s best-selling plug-in electric car for 2018.
It was in the year 2019 that Tesla opened its first Gigafactory in Shanghai, China marking its first foray into global expansion. By 2020, it also began constructing its new Gigafactory in Berlin, Germany, and one more in Texas, United States. The same year it also began delivering its fifth vehicle model – the Model Y crossover. By July 2020, Tesla Inc. became the world’s most valuable automaker by market capitalization by reaching a valuation of USD 206 billion. The company also became eligible for inclusion in the S&P 500 index after it reported consistent profits for four consecutive quarters between July 2019 and June 2020 and was added in December 2020. By October 2021, Tesla’s market capitalization reached USD 1 trillion and in March 2022 launched its new car factory in Berlin which is the largest for electric vehicles in Europe.
Tesla and India
In the year 2021, Tesla officially incorporated an Indian company in Bengaluru as Indian government officials stated that due consideration was being given to Tesla’s proposal of a sharp reduction in import duties for electric cars. However, even after all this time, the company is yet to move forward with service centers and supercharger stations.
Elon musk took to Twitter and posted – “Tesla will not put a manufacturing plant in any location where we are not allowed to first sell and service cars.”
This tweet came in response to the Indian government’s non-acceptance of Musk’s demand of reducing import duties on Tesla vehicles. Currently, India levies a 100% tax on imported cars costing upwards of USD 40,000 and 60% on cars that are valued at less than USD 40,000. These import taxes are inclusive of insurance and shipping expenses.
Elon Musk blames ‘government challenges’ for Tesla’s India delay
Nitin Gadkari, Minister of Road Transport and Highways of India clarified at the ‘Raisina Dialogue 2022’ held in April 2022 that it cannot be a good proposition for India if Musk wants to manufacture Tesla cars in China and sell in India. He went on to say – “Our request to him is to come to India and manufacture here. We have no problems. The vendors are available, and we offer all kinds of technology and because of that, Musk can reduce the cost. India is a huge market and offers good export opportunities too. Musk can export Tesla cars from India.”
In another interview with a media channel, Gadkari said – “Elon Musk is welcome in India. However, it will not be possible if he only manufactures in China and wants a concession for marketing in India.” He went on to say that Tesla can avail of all concessions and other benefits only if it manufactures its cars in India.
In response to this Musk tweeted – “Tesla isn’t in India yet due to challenges with the government.” He went on to clarify that he is ready to launch cars in India but the country’s import duties on EVs, according to him, are the highest in the world.
Conclusion
Between the years 2015 and 2020, Tesla expanded quickly, successfully acquiring many companies and increasing capabilities in battery technology. The company also increased its global presence within that time frame. However, the Indian government is maintaining a firm position regarding Tesla’s Indian foray. Union Minister Mahendra Nath Pandey, in July 2022, categorically said that Tesla can only come to India if it complies with the Atmanirbhar Bharat policy of the country. Hopefully, both parties can reach a mutually beneficial resolution soon.
FAQs
What are the primary reasons for Tesla’s delayed entry into the Indian market?
The primary reasons for Tesla’s delayed entry into the Indian market are high import duties, lack of charging infrastructure, and regulatory hurdles.
What steps can Tesla take to overcome the challenges of entering the Indian market?
Tesla can take several steps to overcome the challenges of entering the Indian market, including:
