Tesla opens bookings in India; Model Y priced at ₹61.07 lakh in Mumbai

Elon Musk-led Tesla has opened bookings for its electric mid-size SUV, the Model Y, in India. The entry rear-wheel drive variant, which comes with a range of 500 kilometres, is available on Tesla’s website for ₹59,89,000 (ex-showroom). The website shows the starting on-road price of the Model Y at ₹61,07,190 in Mumbai.

Tesla opened its maiden India showroom in Mumbai’s Bandra Kurla Complex. Maharashtra chief minister Devendra Fadnavis inaugurated India's first Tesla showroom.

“At the very outset, I would like to welcome Tesla to India. This is not just an inauguration of an experience centre but it is a statement that Tesla has arrived, a statement that Tesla has arrived in the right city and in the right state. That is the state of Maharashtra and the city of Mumbai, the entrepreneur capital of India and not just financial and entertainment capital,” Fadnavis said.

“Tesla is not just a car company. It is all about design, innovation and sustainability for which Tesla stands as a testament. I think that is one and only reason why it is loved globally. In 2015, when I went to the US, I had my first ride in Tesla. Then, I thought that we require such vehicles for mobility in India. It took them 10 years to come to India. We are very happy that finally you are here. And, I am sure that people of Mumbai and India are going to love Tesla,” the Maharashtra CM said.

Fadnavis said that India will be one of the best markets for Tesla. “We have a very robust market for electric mobility. We (Maharashtra) are a hub for EV manufacturing. But I think Tesla is going to change the entire market. I think you must also look at our policies. We have very good policies towards creating charging infrastructure, promoting EVs and also the best incentives towards manufacturing EVs. I think it’s a good start and eventually in future, we wish to see all the R&D and manufacturing being done in India. I am sure that at an appropriate stage, Tesla will think about that. But today we are very happy that you are starting this journey from Mumbai,” he said.

To be clear, Tesla has no plans to manufacture cars in India. In June, Union minister of Heavy Industries H. D. Kumaraswamy said that the Elon Musk-led company is not interested in manufacturing cars in India and is only looking to set up two showrooms. Tesla is expected to open its second showroom in Delhi or Gurugram.

The Indian government recently rolled out its EV manufacturing policy to attract foreign carmakers into the country. The Scheme to Promote Manufacturing of Electric Passenger Cars in India (SPMEPCI) slashes import duty to 15% from 100% for EVs with cost, insurance and freight value of $35,000 or more.

The government’s EV manufacturing scheme, which critics argued was tailor-made for Tesla, slashes import duty to 15% from 100% for EVs with cost, insurance and freight value of $35,000 or more.

Automakers are required to invest at least ₹4,150 crore or $500 million to set up a new EV manufacturing facility in India within three years. A localisation of 25% is to be achieved by the third year and 50% by the fifth year. The duty foregone on the total number of EVs allowed for import would be limited to the investment made or ₹6,484 crore. Mercedes-Benz, Volkswagen, Skoda Auto, Hyundai, and Kia have shown interest to manufacture EVs under the new scheme.