Tesla has officially launched the long anticipated Model Y electric SUV in India, marking a significant milestone in the company’s anticipated entry into the Indian automobile market. The Model Y is available in two versions:

Model Y Rear-Wheel Drive (RWD): ₹60 lakh

Model Y Long Range All-Wheel Drive (AWD): ₹68 lakh

Tesla opened its first experience centre in Mumbai’s Bandra Kurla Complex (BKC) on the same day as the launch of the Model Y. The experience centre will enable customers to see the car and learn about Tesla’s various features. The vehicles sold in India will be imported from Tesla’s Shanghai factory, and five vehicles have already arrived in Mumbai.

How Does the Price Compare to Prices from Other Countries

The Model Y is… much more expensive in India than in other countries. Here’s a quick comparison of prices in other countries (converts to U.S. dollars):

United States: starting at $44,990 (and potential maximum $7,500 in federal EV tax credits)

China: around $36,430 starting price

Dubai: starting at $54,000

Japan: around $37,000

Germany: around $50,925

Canada: around $40,000 to 44,000 (after duties)

These prices are considerably lower than India’s ₹60 lakh starting price (about $72,000). The difference has mostly to do with import taxes and custom duties that charge extra for foreign vehicles in India. These extra costs make Tesla’s cars more costly than in most other markets.

Why Tesla’s Pricing Could Be an Issue in India
India tends to be price sensitive and new car buyers usually want the best “deal” for their money. Since some other car companies are already selling electric vehicles at a lower cost, the premium pricing could present a hurdle for Tesla’s products. Unless Tesla builds a local manufacturing plant to avoid the hefty import duties, prices may remain high.

Currently, Tesla is not considering producing cars or components in India, so prices may not go down anytime soon. The company is hiring additional staff and looking for a new second location in New Delhi, however.

Also Read: Missed Prime Day Sale Amazon Extends Mega Deals on Smart TVs

What’s next?
Tesla’s success in India will depend on how buyers respond to the brand’s reputation and high-tech appeal, despite the high price. For now, Tesla fans in India can finally get their hands on a Model Y—though at a premium compared to the rest of the world.

This marks a bold move by Tesla, but the real test will be whether Indian buyers are willing to pay the price for global innovation.

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