On July 15, 2025, Tesla Inc. officially launched its much-awaited Model Y in India, marking a major milestone for the Indian electric vehicle (EV) market. However, the high
On July 15, 2025, Tesla Inc. officially launched its much-awaited Model Y in India, marking a major milestone for the Indian electric vehicle (EV) market. However, the high on-road price of ₹61.06 lakh in Delhi has sparked discussions around import duties, the company’s India strategy, and the affordability of EVs in the country.
The base variant of the Model Y has been priced at:
This price is almost double the Model Y’s base price in the US, which is around $39,000 (₹33 lakh). The primary reason behind this steep hike is India’s high customs duties on imported cars.
The Tesla Model Y is being imported as a Completely Built Unit (CBU) from Tesla’s Gigafactory in Shanghai, China. Under Indian law, CBU vehicles priced above $40,000 attract a customs duty of 70%, which significantly increases the final price.
Here’s a breakdown of the cost impact:
| Component | Approximate Cost (₹) |
|---|---|
| Base car (Ex-Factory) | ₹33 lakh |
| Import duty (70%) | ₹23.1 lakh |
| GST + Cess | ₹3.5 lakh |
| Insurance & RTO | ₹1.5 lakh |
| Total On-Road Price | ₹61.06 lakh |
This pricing structure puts the Model Y out of reach for most Indian buyers, especially when compared to locally manufactured EVs like the Tata Nexon EV or MG ZS EV.
Elon Musk has long been vocal about India’s import duties, calling them “among the highest in the world.” Despite negotiations with the Indian government, Tesla hasn’t yet committed to setting up a local manufacturing unit or Gigafactory in India.
Instead, the company has:
This strategy has sparked criticism from Indian EV advocates, who argue that local production would reduce prices, create jobs, and promote EV adoption in India.
India is one of the fastest-growing EV markets globally, supported by the government’s FAME II scheme, lower GST on EVs (5%), and incentives for local production. However, the luxury EV segment remains niche due to high pricing and limited charging infrastructure.
Tesla’s arrival, even at premium pricing, brings several benefits:
Still, for Tesla to achieve scale in India, localized production and a wider product portfolio (like the Model 3 or the upcoming low-cost compact EV) are essential.
Tesla’s Model Y launch is a symbolic entry into the Indian market, more about brand presence than mass adoption—for now. The ₹61 lakh price tag places it firmly in the luxury car bracket, far beyond the reach of the average Indian consumer.
While Tesla fans are excited, wider adoption will depend on how soon Tesla can localize production, reduce costs, and expand its product range. For now, the Model Y remains a status symbol for the elite rather than a mass-market gamechanger.
FAQs
The Tesla Model Y is priced at ₹59.89 lakh ex-showroom and ₹61.06 lakh on-road in Delhi, inclusive of registration and insurance charges.
Tesla is importing the Model Y from China, and India levies a 70% customs duty on imported vehicles above $40,000, significantly increasing the price.
As of now, Tesla is not manufacturing in India. It imports vehicles from its Shanghai Gigafactory and has only opened experience centers in Mumbai and Delhi.
Tesla has launched the Model Y SUV as its first officially available model in India.
Government subsidies like FAME II are mainly for locally manufactured EVs. Since Tesla imports the Model Y, it does not qualify for major EV subsidies in India.
