Here is what we know about Tesla’s current plans for India

Published 16/07/2025, 14:24
© Reuters.

Investing.com -- Tesla (NASDAQ:TSLA) has officially launched in India, foraying into the market with a sales-only presence and opened its first showroom in Mumbai.

Two versions of the updated Model Y are being offered—standard range (500 km) and long range (622 km)—priced at around $70,000 and $80,000, respectively. Deliveries are expected to begin in the third and fourth quarters of 2025, depending on the variant.

For now, the carmaker has not disclosed any manufacturing plans in India. It is importing the vehicles as fully built units, which subjects them to steep duties of 70-100%.

According to Bernstein analysts, Tesla has not signed up for India’s new EV policy, which offers a lower 15% duty for vehicles over $35,000 in exchange for a commitment to local manufacturing.

“Tesla might be looking for import sops through the U.S.-India trade treaty and perhaps this is the reason for initiating a presence as policies and tariffs can change quite swiftly in the U.S. these days,” analyst Venugopal Garre said in a note.

Tesla’s immediate focus appears to be on brand building, not mass volumes. “By launching the Model Y at a luxury price point, Tesla is clearly focusing on building brand and not mainstream volumes,” the note said.

Additional showrooms are planned in Delhi and Gurgaon, and each city—along with Mumbai—will also receive four charging stations, each hosting 16 superchargers.

Despite the buzz, Bernstein expects limited near-term disruption for local automakers such as Mahindra, Maruti or Tata, Garre said. 

Even under a favorable trade agreement scenario, Tesla’s entry-level EVs would still be more than 30% costlier than top-tier local models. However, that could change over time as Tesla is developing a more affordable EV priced around $25,000, the analyst said. 

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.