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Tesla Targets Luxury EV Segment in India with High-Priced Model Y Launch

Tesla India

Tesla India

Tesla has officially entered the Indian market with the launch of its Model Y, priced around ₹60 lakh ($70,000), making it the most expensive among major global markets.

The move reflects a strategic pivot by the U.S. electric vehicle maker, which is grappling with slowing global sales and underutilized production capacity. Tesla is betting on India’s long-term growth potential in the EV sector, despite longstanding challenges such as high import tariffs.

With deliveries expected to begin in the third quarter, Tesla’s strategy focuses on capturing a premium niche in a country where EVs account for only 4 percent of total auto sales. Rather than competing with mass-market players like Tata Motors and Mahindra, Tesla is positioning itself alongside luxury carmakers such as BMW and Mercedes-Benz.

Tesla inaugurated its first Indian showroom in Mumbai and began accepting online orders for the Model Y. The vehicles currently offered are imported, with units manufactured in China due to the lack of right-hand drive production at Tesla’s U.S. factories. The company continues to lobby for reduced import duties, which can exceed 100 percent and significantly inflate prices, Reuters news report said.

India’s government has shown openness to Tesla’s entry, with local officials expressing interest in potential future R&D and manufacturing investments. Maharashtra Chief Minister Devendra Fadnavis voiced optimism that Tesla may eventually set up production in India, aligning with the country’s broader goal to localize EV manufacturing.

For now, Tesla’s India play is a cautious but symbolic step toward establishing a presence in one of the world’s largest and fastest-growing automotive markets, with a long-term strategy that may evolve into local production and deeper integration into the Indian EV ecosystem.

GreentechLead.com News Desk

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