With the ₹60 lakh Model Y, Tesla debuts in Mumbai, opening its first showroom. However, reports predict that India’s EV revolution is heating up below ₹2 million.
Tesla has officially entered the Indian market, opening its first showroom at Mumbai’s upscale Maker Maxity Mall in Bandra Kurla Complex (BKC). The company also launched its Model Y electric SUV, priced from ₹6.01 million.
Top state officials, including Maharashtra Chief Minister Devendra Fadnavis, attended the launch at the showroom on Tuesday.
Tesla is offering two variants of the Model Y in India: the rear-wheel drive version at ₹6.01 million and the long-range all-wheel drive at ₹6.78 million. These prices are significantly higher than in other markets due to India’s steep import duties. In the US, the same model starts at around ₹3.86 million, while in China it costs approximately ₹3.05 million.
Despite its premium pricing, Tesla is targeting wealthy urban buyers in India, entering a market where petrol and diesel cars still dominate. India’s electric vehicle (EV) penetration remains low at 4%, but the government aims to raise this to 30% by 2030 through tax incentives and policy support.
According to a report by the Financial Express, Tesla’s entry is expected to boost awareness but may not translate into high sales volumes in the short term. Meanwhile, the more affordable sub-₹2 million EV segment is seeing fierce competition.
Auto giant Kia is set to launch the Carens Clavis EV in this space, with rivals like VinFast, Mahindra, and Tata Motors also expanding their offerings.
Kia’s Clavis EV, expected to cost under ₹2 million, will be its third electric model in India. Vietnamese brand VinFast is also preparing to launch two models, VF6 and VF7, from its Tamil Nadu plant.
With mass-market players pushing aggressively, the real action in India’s EV market is shifting below the ₹2 million mark. While Tesla grabs headlines, it is the locally manufactured, affordable EVs that are expected to drive the next phase of growth.
