Tesla inches towards introducing car sales in India
Tesla Makes Its Grand Entry into India's Booming EV Market
After years of anticipation, Tesla, the global leader in electric vehicles (EVs), officially entered the Indian market in mid-2025. The American automaker launched its Model Y electric midsize SUV, with deliveries expected to begin in September 2025.
The launch comes after Tesla secured locations for its first two stores, one in Mumbai and one in New Delhi. The appearance of the new Model Y on Indian roads this month is a strong indicator that sales could soon begin.
Tesla's arrival in India is a significant strategic move, as the country is the world's third-largest auto market and is rapidly growing in electric vehicle adoption. The company plans to roll out three more models in India during 2026: the Model 3 sedan, the Model S sedan, and the Model X SUV.
The Model Y is currently the only Tesla model available in India, priced between approximately Rs 60 lakh and Rs 68 lakh depending on the variant, with an optional Full Self-Driving package costing an additional Rs 6 lakh. The most significant update to the Model 3 design occurred last year, and Tesla has refreshed the design of the Model 3 several times since its initial launch.
Tesla's entry into India is expected to intensify competition in the premium EV segment, challenging domestic manufacturers like Tata Motors, which currently dominate India’s EV market. The company's technology, brand appeal, and charging infrastructure are likely to push domestic manufacturers to accelerate product development and infrastructure expansion to maintain market share.
The potential trade deal between India and Tesla aims to lower India's high import tariffs on vehicles, which currently reach 110%. This move would enhance Tesla's ability to price its vehicles competitively in India.
In a meeting earlier this year, Tesla CEO Elon Musk met with India's Prime Minister. Many Indian customers reserved Tesla vehicles nearly a decade ago, before the official launch of the Model 3 in North America. Tesla is refunding reservation fees to these customers. The refunded fees will be returned temporarily, with Tesla planning to reach out again once its offerings in India are finalized.
As Tesla expands its supercharger network across Delhi, Mumbai, and Bengaluru, it is clear that the company is committed to supporting its Indian launch. This represents Tesla’s major strategic push into India’s fast-growing EV market with a phased introduction of models and expansion of charging infrastructure to cater to key urban centers.
Sources:
[1] Tesla enters India, to launch Model Y in September
[2] Tesla's Indian Launch: Model Y, Model 3, Model S, Model X, and More
[3] Tesla to launch Model Y in India later this year, eyes expansion of supercharger network
[4] Tesla plans to launch in India, says Model Y deliveries to start in September
[5] Tesla's Indian Launch: Model Y, Model 3, Model S, Model X, and More
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