Tesla makes entry into Indian market with first showroom in BKC, Mumbai: Read how Elon Musk’s EV giant tried for years to sell in India
Tesla is all set to make its debut in the Indian market by launching its first electric vehicle on Tuesday, July 15. The unveiling will take place at Mumbai’s Maker Maxity Mall, located in the Bandra Kurla Complex.
According to a report by Reuters, the EV giant has also revealed the pricing for its cars. The much-anticipated Model Y is listed at an on-road price of ₹61 lakh. The rear-wheel drive variant is priced slightly lower, at ₹59.89 lakh.
Tesla’s pricing list highlights that the base version of the Model Y, the rear-wheel drive, will cost ₹60 lakh for a full cash purchase. The long-range all-wheel drive variant comes at a higher price of ₹68 lakh. These prices apply to completely built units (CBUs) that will be imported into India.
Tesla’s third attempt at entering India
Tesla has had its sights set on the Indian EV market for a long time. This marks Elon Musk’s third attempt to establish the brand in the country. Earlier efforts failed to gain traction due to regulatory and logistical challenges. However, after Musk met with Prime Minister Narendra Modi, the company began recruiting for new roles in India, signaling a renewed commitment.
Tesla’s previous attempts to enter the Indian market also fell short. The company formally decided to launch retail operations in April this year. While the move was welcomed by both the Indian government and consumers, it failed to enthusiasm from certain market incumbents and even drew criticism from US President Donald Trump. He called the move “unfair,” citing tariff imbalances between India and the U.S., and remarked that it was “practically impossible to sell a car in India.”
The key obstacles Tesla previously faced included steep import duties, up to 110%, and the Indian government’s insistence on domestic manufacturing. Tesla had requested tax reductions to facilitate vehicle imports before committing to set up a production facility, but talks with the government failed to reach a consensus.
Further, instead of depending on imports, the government wanted Tesla to establish a production facility. It was also true that the company was hesitant to make a crucial upfront investment in a developing market. India still trails behind major markets in terms of EV demand, which has just lately begun to increase.
Despite these hurdles, Tesla brings several competitive advantages to the Indian market. The company enjoys global brand recognition and a strong reputation as a tech-forward automaker. Its innovations in battery efficiency, autonomous driving, and clean energy make it especially appealing to India’s growing base of tech-savvy consumers.
Tesla’s image as a premium electric vehicle manufacturer could help it carve out a niche consumer base before local competitors catch up. Once the company successfully localizes production, its vehicles could become more competitively priced, potentially making them accessible to a much broader audience in the long run.
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