Tesla enters the Indian market with Giga Shanghai Model Y starting at $70,000
globalchinaev
• 3 days ago
Source: Tesla
On July 15, 2025, Tesla (NASDAQ: TSLA) has officially entered the Indian market today with the opening of its first showroom in Mumbai.
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This expansion represents a move for the global electric vehicle manufacturer into the world's third-largest automotive market.
Source: Tesla
The Model Y, manufactured at Tesla's Shanghai factory in China, will be the initial model offered in India.
Pricing for the Model Y Rear-Wheel Drive version starts at 5,989,000 Indian Rupees (c. $70,000), while the Long Range Rear-Wheel Drive version is priced at 6,789,000 Indian Rupees (c. $79,000).
For context, the new Model Y Rear-Wheel Drive in China is 263,500 CNY (c. $36,700), and the Long Range All-Wheel Drive version is 313,500 CNY (c. $43,700).
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A 15% import tariff applies, and the use of China's supply chain is noted as a factor in managing the Indian pricing.
India's market presents specific considerations for new energy vehicles, including infrastructure development and consumer preferences.
The Indian government's policy framework includes a requirement for 50% localization within five years; otherwise, tariffs would revert to 100%.
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In response, Tesla has established service networks in cities such as Mumbai and Pune, and has plans for a manufacturing facility in Maharashtra.
The current infrastructure for public charging in India is significantly less developed compared to China. Additionally, India's high temperatures, which can reach 50°C (122°F), and varying road conditions necessitate specific vehicle adaptations.
To address these factors, Tesla has implemented 12 localized adjustments to the Model Y's battery thermal management system and suspension structure.