Tesla Debuts in India through Model Y Unveiling and Inauguration of the First Showroom in Mumbai's Business Bay City Center
Tesla, the American electric vehicle (EV) giant, has made its long-awaited entry into the Indian market with the launch of its Model Y SUV. The launch comes at a pivotal moment for India, as the country aims to increase EV sales to 30% of all car sales by 2030, up from the current 4%.
The Indian government is offering significant incentives to EV manufacturers under the Scheme to Promote Manufacturing of Electric Passenger Cars in India (SPMEPCI). To qualify for benefits, manufacturers must commit to investing at least ₹4,150 crore (around USD 479 million) over three years. Approved manufacturers can import completely built electric vehicles (CBUs) costing USD 35,000 or more at a reduced customs duty rate of 15% for five years.
Tesla, however, has chosen not to participate in the Indian government's incentive scheme and instead opt to import cars from its Shanghai facility. This decision may be due to the strategic requirements of the scheme, which aim to ensure deep domestic manufacturing integration.
The Model Y, priced at Rs. 59.89 lakh for the Long Range RWD version and Rs. 67.89 lakh for the Long Range AWD version, is aimed at India's urban elite and premium EV customers. Tesla is taking on established players like BMW and Mercedes-Benz in the luxury electric vehicle segment.
The first Tesla store in Mumbai, a 3,000 sq ft experience center located at Maker Maxity Mall, was inaugurated by Maharashtra Deputy Chief Minister Devendra Fadnavis. Fadnavis expressed a desire for Tesla to manufacture in India and urged the company to consider Maharashtra for long-term investment in manufacturing and research and development.
Deliveries of the Model Y are expected to start by August-end, and a second showroom is planned in Delhi this year. The high import taxes in India have resulted in the Model Y being significantly more expensive compared to other markets like the US, China, and Germany.
Tesla has so far received homologation for eight EV models in India and has imported nine units for certification, along with merchandise worth $1 million. The company is also planning to introduce the Model 3, its most affordable EV, with an approximated ex-showroom price in India of around Rs. 29.79 lakh.
Mumbai, where the first Tesla store was opened, represents innovation and sustainability, according to Fadnavis. The store is located near India's first Apple Store, further emphasizing the city's status as a hub for cutting-edge technology.
- The entry of Tesla, a major player in the global technology and business sector, into India's finance-focused Scheme to Promote Manufacturing of Electric Passenger Cars in India (SPMEPCI), could potentially lead to significant investments in the Indian manufacturing industry, boosting the country's technology and lifestyle sectors.
- To cater to India's growing luxury electric vehicle (EV) market, which consists of urban elite and premium customers, Tesla is expanding its footprint by opening more showrooms, such as a planned outlet in Delhi, and introducing affordable models like the Model 3, positively impacting the Indian business and lifestyle landscape.
