Tesla India: Tesla Model Y 2025 Launch, Price and Details

After years of flirting with the idea of launching in India, Tesla finally announced its entry into the Indian market – but it’s not quite what everyone was hoping for. The highly anticipated arrival of the American electric car behemoth isn’t quite as thrilling as most were hoping for, because while the company is kicking off orders for its Model Y 2025, it’s priced so ludicrously high that many Indians are left questioning – who’s this car even for?

Model Y now available – but it’ll cost you an arm and a leg
Tesla has now made available to the Indian market two variants of its Model Y:
Model Y Rear-Wheel Drive — ₹61,07,190 (roughly $71,000 USD)
Model Y Long Range — ₹69,15,190 (roughly $80,000 USD)

To put this into perspective, these same models in the states can be bought for almost half that price. So what gives?

IN PICS | Tesla opened its first showroom in India on July 15 in Mumbai, marking its official entry into the country.
The Model Y was unveiled at the launch, as the EV giant looks to expand its customer base amid slowing sales in the US and Europe.#TeslaInIndia #TeslaIndia… pic.twitter.com/sbCPtWuk4p
— Mint (@livemint) July 15, 2025

Why is Tesla so expensive in India?

No duty-cut benefits — and no local plant either. Last year, India offered a special package to electric vehicle makers — lower import duties in exchange for a real commitment to opening a factory in India. The quid pro quo was designed to induce companies like Tesla to manufacture and assemble locally, lower prices in the long run, and create jobs in India.

However, Tesla recently told the Indian government that it has no plans to set up a manufacturing plant in the country, and so the company gets no tax relief. Consequently, the prices remain exorbitantly high due to heavy import duties – taxes can be as high as 100% in India, in addition to registration and road taxes.

Is Tesla serious about the Indian market?

Tesla has begun the hiring process for sales and service personnel in major cities in India, and retail store locations are reportedly being confirmed. But with these price points, it is clear they aren’t targeting the average Indian buyer not yet, anyway.

Premium car, premium price for now

Tesla’s arrival in India is a big deal for the EV movement. But for now, the high prices simply mean it’s inaccessible for most Indian buyers. Unless Tesla changes their approach, builds locally, or brings in some version of an actual affordable car, it may still be considered a luxury status symbol and not an electric car in India.