According to Tesla India’s website, only the Model Y is currently available. It comes in two variants: the rear-wheel drive model priced at Rs 59.89 lakh and the long-range rear-wheel drive model at Rs 67.89 lakh (ex-showroom). The on-road prices rise to Rs 61.07 lakh and Rs 69.15 lakh, respectively.
Why is the Tesla Model Y Almost Twice as Expensive in India?
In the US, the Model Y starts at $37,490 (approximately Rs 32 lakh) after a federal tax credit of $7,500—nearly half the Indian price.
The primary reason for this price disparity is import duty. Tesla is currently importing completely built units (CBUs) into India, which attract steep import duties:
- 100% if the car’s CIF (Cost, Insurance, Freight) value exceeds $40,000
- 70% for cars priced below that threshold
This significantly inflates the cost of Tesla vehicles for Indian buyers.
Earlier this year, Commerce and Industry Minister Piyush Goyal reaffirmed that India will not craft policies tailored for any one company. Instead, the government aims to create a broad framework that attracts global EV makers to establish manufacturing bases in India, which is now the world’s fastest-growing major economy.
Goyal also emphasized the government’s commitment to building a robust EV ecosystem to reduce both carbon emissions and the country’s heavy dependence on oil imports.
Tesla’s Strategy in India
Tesla is entering the Indian market at a time when it faces slowing sales in Europe and China. According to reports, the company has already shipped its first batch of Model Y rear-wheel drive SUVs from its China plant to India.
In preparation for its local operations, Tesla India recently leased 24,565 sq. ft. of warehouse space at Lodha Logistics Park in Mumbai for a five-year term.
