Tesla Begins India Sales with Redesigned Model Y

Tesla executive announces plans to begin sales in India with a redesigned Model Y. The group's net sales breakdown includes automotive vehicles (74.2%), services (10.8%), energy generation and storage systems (10.3%), automotive credits (2.8%), and automotive leasing (1.9%). Net sales are geographically distributed between the US (48.9%), China (21.4%), and other (29.7%).

Tesla has officially announced its entry into the Indian automotive market with the launch of the Model Y. The company has set up its first experience centre in Mumbai’s Bandra Kurla Complex (BKC) and will commence retail sales through imported units. The Model Y will be available in two variants: Rear-Wheel Drive (RWD) at ₹60 lakh and Long Range AWD at ₹68 lakh.

The pricing of the Model Y in India is significantly higher compared to other major markets, such as the US, China, and Dubai. For instance, the Model Y Rear-Wheel Drive costs $44,990 in the US, while the Long Range AWD variant is priced at $46,630. In China, the prices are ¥263,500 ($36,430) and ¥313,000 ($43,270) for the respective variants. The wide pricing gap is primarily due to import duties and shipping costs, which pose a challenge in India's price-sensitive market [1].

Tesla's strategy in India focuses on selling imported models rather than manufacturing locally. This approach will attract about 70% in import duties and additional levies. The company has already delivered five Model Y vehicles to Mumbai from its Shanghai facility. Tesla's entry into India has been years in the making, with the company repeatedly calling for lower import duties. The Mumbai showroom launch signals the beginning of the company's formal commercial presence in India, a key step in testing the market for future growth opportunities [2].

Tesla's net sales in 2024 were $97.7 billion, with automotive vehicles contributing 74.2% of the total. The company's geographic distribution of net sales includes the US (48.9%), China (21.4%), and other (29.7%) [3].

The Model Y's launch in India comes at a time when Tesla is dealing with excess manufacturing capacity and falling sales globally. The company's stock price has dropped significantly in the first two months of 2025, with Elon Musk's personal fortune decreasing by nearly $90 billion. The company's poor performance in the first quarter of 2025 led to Musk stepping back from government responsibilities to focus on Tesla [3].

References:
[1] https://www.business-standard.com/industry/auto/url-tesla-model-y-price-in-india-vs-us-china-dubai-europe-canada-125071500358_1.html
[2] https://www.zeebiz.com/automobile/news-tesla-set-to-launch-first-india-experience-centre-in-mumbai-on-july-15-marks-formal-market-entry-373198
[3] https://www.buyacar.co.uk/the-latest-tesla-statistics/