Elon Musk’s Tesla Inc. is set to enter the Indian market soon, with its Indian subsidiary, Tesla India Motor & Energy, applying for homologation and certification of two models — Model Y and Model 3.
Approval of these certifications is a mandatory step before launching any vehicle in the country.
Before its official entry, Tesla has reportedly finalized a location for its first showroom in Mumbai’s BKC area.
The U.S.-based automaker plans to bring fully imported electric vehicles (EVs) to India.
Musk has publicly expressed his excitement about expanding to India, viewing it as a key alternative to the Chinese market, which has been affected by U.S. sanctions.
Tesla Model Y
Tesla's Model Y received a mid-cycle refresh in January, featuring updated LED lighting, improved aerodynamics, and revamped interiors with a 15.4-inch central touchscreen and an 8-inch rear passenger screen.
Available in two variants - RWD and Long-Range AWD - the Model Y boasts ranges of 719km and 662km, respectively, with acceleration times of 5.9 seconds (RWD) and 4.3 seconds (AWD) from 0-100kph.
The price of the Tesla Model Y in India is estimated to be around Rs 70 lakh.
Tesla Model 3
The Tesla Model 3 sedan comes in three variants: Long-Range RWD, Long-Range AWD, and Performance.
The RWD model boasts a 584km range and 4.9-second 0-100kph acceleration, while the AWD version offers 557km and 4.2-second acceleration.
The high-performance variant delivers 510hp, accelerating from 0-100kph in just 2.9 seconds. The Model 3's interior mirrors the Model Y's, featuring a 15.4-inch central screen and an 8.0-inch rear passenger screen.
The Tesla Model 3 is priced at $29,990 (Rs 25.99 lakh) in the US. If imported to India with a 15% duty, the estimated ex-showroom price would be around Rs 29.79 lakh.
Can Indians Afford Tesla?
Affordability is a major factor in Tesla’s entry into India. With prices starting around â¹30 lakh ($37,000), Tesla’s EVs will cater mainly to the premium and luxury segments.
Even with the expected 15-20% reduction in import duties, Tesla’s most affordable car would still cost between â¹35-40 lakh, according to a report by CLSA, a global capital market company.
The report states that Tesla’s cheapest Model 3 costs around $35,000 (â¹30.4 lakh) at the factory level in the U.S. After factoring in road tax and insurance, the on-road price in India would be approximately â¹35-40 lakh ($40,000 USD).
Even if Tesla introduces a more affordable entry-level model priced below â¹25 lakh, the impact on Indian automakers is expected to be minimal.
The CLSA report suggests that Tesla’s presence will not significantly disrupt the Indian auto industry, as EV penetration in India remains lower than in China, Europe, and the U.S.
Tesla’s success in India will likely depend on its long-term strategy — whether it remains an imported luxury brand or sets up local manufacturing to bring costs down for a wider audience.