New Delhi, India – Tesla is lastly cruising in India, the world’s third-largest automotive market, with the launch of its Mannequin Y. The rollout marks the fruits of a decade-long, topsy-turvy journey.
Showcased at its new showroom in Mumbai, India’s monetary capital, on Tuesday, Tesla’s Mannequin Y is now on sale for about $70,000, a worth comparatively increased than in some other main market.
Elon Musk’s electrical automobile (EV) firm is braving excessive tariffs and stiff competitors in India’s nascent however quickly increasing EV market.
As New Delhi negotiates a commerce take care of america, India’s automotive sector tariffs, arguably among the many highest on the planet, are a central matter.
“Tesla’s entry into India marks a major growth of the corporate’s world footprint,” mentioned Kwan Wongwetsawat, a senior auto analyst on the analysis agency GlobalData. “Earlier than this resolution, Tesla confronted a number of market challenges,” he mentioned, starting from geopolitical considerations, a decline in world gross sales, and an unsure launch schedule for a brand new compact mannequin.
So, what’s the excitement about Tesla coming to India? Can it leverage the creating Indian market? And may India give a shoulder to Musk’s EV large as its global sales plummet?
What’s Tesla providing in India?
To begin with, in India, Tesla has chosen to supply its Mannequin Y within the mid-range luxurious section, combining its hallmark options: minimalist design, excessive efficiency, and long-range driving distance.
The driving force-assistance know-how is obtainable as an add-on for 600,000 Indian rupees, or $7,000. Tesla is providing two variants of Mannequin Y in India: the rear-wheel drive (RWD) and the long-range RWD version. Whereas the RWD has a spread of as much as 500 kilometres (310 miles) on a single cost, the long-range variant has a spread of 622km (386 miles).
Within the Indian market, the Mannequin Y will go head-to-head with different premium electrical SUVs, such because the Mercedes-Benz EQB, BMW iX1, Volvo EC40, and Kia EV6. Tesla affords a four-year, or 80,000km, automobile guarantee for the battery and drive unit, whichever comes first.
“Tesla is the most important EV firm on the planet, and its entry in India is an enormous milestone for the nationwide EV business,” mentioned Puneet Gupta, who leads the India and Southeast Asia groups at automotive intelligence agency S&P World Mobility.
“It’s not nearly promoting vehicles in India. However Tesla’s entry will help India to construct the EV ecosystem,” Gupta informed Al Jazeera. “And the most important influence of an organization like Tesla is that it boosts folks’s confidence in EVs as a class.”
The Mannequin Y reaches a prime velocity of 201km/h (125mph), with six colored exterior finishes. It’s geared up with normal options similar to computerized emergency braking, ahead collision alerts, blind spot monitoring, and lane departure warnings. Tesla’s signature Dashcam and Sentry Mode present real-time recording and alerts for suspicious exercise, even when the automobile is parked.
Why is Tesla so costly in India?
Tesla’s Mannequin Y rear-wheel drive is priced at 6 million Indian rupees, or $70,000, whereas the long-range RWD version is priced at about 6.8 million Indian rupees, or simply under $80,000.
Tesla’s web site doesn’t present the value breakdown, together with delineating the extra import tariff prices and levies imposed by a state.
These costs for Mannequin Y are increased than in some other main automotive market. They begin at $44,990 in america, $36,700 in China, and $53,700 in Germany.
India at present imposes one of many highest import responsibility tariffs on totally constructed vehicles on the planet, considerably taking pictures up costs of overseas autos, together with EVs like these from Tesla.
Till not too long ago, India imposed a 110 p.c import responsibility on all totally constructed autos. The Indian authorities revised this coverage, decreasing the import responsibility to fifteen p.c for carmakers committing to speculate and arrange native manufacturing amenities inside a three-year timeframe.
This steep tariff construction has been some extent of rivalry for world carmakers like Tesla, which has lengthy lobbied for a discount in duties to check market viability earlier than committing to native manufacturing.
US President Donald Trump has repeatedly criticised and referred to as out India as a “tariff king”. Each international locations proceed to barter a commerce settlement, the place the auto sector reportedly stays a central focus. Musk, Tesla’s CEO, has additionally famous that “import duties [in India] are the best on the planet by far of any massive nation!”
What’s India’s EV sector like?
India has set a nationwide purpose of attaining 30 p.c EV adoption by 2030.
Whereas electrical automotive gross sales in India elevated by 20 p.c in 2024 from the 12 months earlier than, EVs nonetheless represented simply 2.5 p.c of the entire 4.3 million passenger autos offered. Regardless of its comparatively small base, the EV sector in India is projected to develop quickly, from its present market worth of $54.41bn to $111bn by 2029.
At present, native producers dominate the area, providing competitively priced EVs tailor-made to India’s cost-conscious shoppers. Tata leads with roughly 60 p.c of the market share within the electrical automotive section, adopted by JSW MG Motor India – a collaboration between India’s JSW Group and China’s SAIC Motor – after which Mahindra & Mahindra.
Excessive-end electrical vehicles, priced above $20,000, made up a minuscule 6.6 p.c of whole EV gross sales final 12 months. That is the place Tesla should compete with the likes of Mercedes-Benz, BMW, KIA and Audi.
How are Tesla gross sales faring in different markets?
Tesla is coming to India as its EV gross sales plunge in world markets, and because the firm bets on its revised Mannequin Y to show its fortunes round.
In its residence market, the US, gross sales continued to fall within the second quarter of 2025 by 6.3 p.c, marking Tesla’s third straight quarterly drop in year-over-year home gross sales.
Dealing with protests in opposition to Musk’s politics and earlier involvement with the Trump administration, gross sales have fallen for 5 straight months in Europe. With some shoppers switching to cheaper Chinese language EVs, Tesla’s market share has dropped to simply 1.2 p.c in Could from 1.8 p.c a 12 months in the past.
In China, Tesla’s second-biggest market, the Q2 deliveries fell by almost 12 p.c.
“Tesla has been going through robust instances globally, so the corporate additionally desperately desires new markets, and India, being the world’s third-largest market, is a superb alternative for them to make up for some loss,” mentioned Gupta of S&P World Mobility.
In a number of international locations, Tesla’s Chinese language opponents are outselling Musk’s EVs. And that’s the place the huge Indian market comes into the equation for Tesla, famous consultants.
As a result of geopolitical tensions between India and China, rival Asian neighbours, only some Chinese language EVs are pitching to the Indian market. In 2023, the Indian authorities rejected BYD’s proposal to ascertain a $1bn manufacturing facility regionally. Whereas SAIC Motor operates in India in collaboration with India’s JSW Group, BYD depends on importing a number of fashions.
“BYD is a direct competitor to Tesla, however the model can be going through challenges in India and has but to ascertain native manufacturing within the nation,” mentioned Wongwetsat. Consequently, he added that each Tesla’s costs in India and people of BYD are increased than in different markets. “Nonetheless, there’s a clear worth distinction between Tesla and native opponents like Tata, MG, and Mahindra,” inserting Musk’s firm within the luxurious section.
Not like different Chinese language-dominated EV markets in Asia, India affords a somewhat open marketplace for Tesla to introduce high-end options and construct an ecosystem from the bottom up.
“The Chinese language corporations aren’t snug investing in India, and even Indian shoppers aren’t snug shopping for Chinese language as a result of unsure geopolitical scenario,” mentioned Gupta.
“For now, the Indian market’s positioning is an excellent benefit for Tesla, the place you actually don’t get competitors from Chinese language, which is absolutely killing Tesla each by way of worth and options,” Gupta informed Al Jazeera.
What challenges does Tesla face in India?
For starters, India, which has the world’s largest inhabitants, is a starkly unequal nation, the place 90 percent of the inhabitants doesn’t have discretionary spending capability. Tesla’s base providing is priced at $70,000, the place, on a nationwide common, per capita earnings is $2,880.
One other concern is that India’s infrastructure, together with the situation of its roads and poor site visitors self-discipline, may pose challenges for Tesla autos’ decrease floor clearance.
India has just one charging station for each 235 EVs, with a complete of 26,367 public charging stations nationwide for its 1.46 billion folks. In distinction, the US has greater than 61,000 charging stations for its 330 million folks.
At its media-only launch in Mumbai on Tuesday, Isabel Fan, Tesla’s regional director, mentioned, “We’re right here to create the ecosystem, to spend money on the required infrastructure, together with the charging infrastructure.” Tesla introduced that it’ll arrange 4 charging stations in Mumbai. Extra will come to Delhi quickly.
“We’re constructing from 0 to 100. It would take time to cowl the entire nation,” Fan mentioned.
Studying into the Indian EV market, Wongwetsat of GlobalData mentioned that “Tesla’s arrival might not considerably influence total battery electrical automobile (BEV) gross sales in India, but it surely may appeal to demand from shoppers curious about luxurious manufacturers like BMW and Audi.”
Moreover, the launch of Tesla vehicles in India could also be only one side of Tesla’s broader ecosystem, Wongwetsat mentioned, which incorporates sectors similar to photo voltaic vitality, vitality storage methods, and even the area business, all of which may improve Tesla’s attraction.
Will Tesla lose subsidies within the US?
Musk and the US president’s obvious public fallout took a pointy flip earlier this month as Trump threatened to chop off billions in federal environmental subsidies which have benefitted Tesla and Musk’s different corporations.
The conflict follows Musk’s renewed criticism of Trump’s tax and spending bill, which incorporates provisions to get rid of key clear vitality incentives – particularly, the $7,500 shopper tax credit score for electrical autos that has lengthy supported Tesla’s market development.
Trump, responding to Musk’s criticism, warned that the Tesla CEO may “lose much more” than simply EV incentives. The dispute has broader implications. Musk has threatened to fund campaigns in opposition to lawmakers who again the invoice and even floated the thought of launching a brand new political occasion.