Winning Bizness Desk

Mumbai. Elon Musk’s electric vehicle company Tesla has made its first delivery in India. On Friday, September 5, Maharashtra’s Transport Minister Pratap Sarnai purchased the first Tesla Model Y from the newly opened showroom at Bandra Kurla Complex in Mumbai.

The car is the Model Y Rear Wheel Drive variant, priced at 60 lakh rupees ex-showroom in India. Sarnai said his motive behind buying the car is to spread awareness about electric vehicles among people, especially the youth. He also announced that he would gift the car to his grandson, so that the younger generation can understand the importance of sustainable transport.

Minister’s message on EV promotion

Speaking at the handover, Pratap Sarnai said setting the right example was necessary. He emphasized that the Maharashtra government had already taken several steps to promote electric vehicles. These include toll waivers on the Atal Setu and Samruddhi Expressway, as well as the purchase of nearly 5,000 electric buses by the state transport department.

He underlined that adoption of electric vehicles is not just about convenience but also about sustainability, cleaner transport, and long-term environmental benefits.

Tesla’s slow start in India

Tesla’s entry into the Indian market had generated massive hype, but the initial response has been slower than expected. According to a Bloomberg report, Tesla has received around 600 orders since bookings opened in July. This number is modest compared to the company’s global scale, where it delivers a similar number of cars every few hours.

The company plans to ship between 350 and 500 cars to India this year, all imported from its Shanghai plant. The first consignment arrived earlier in September. For now, deliveries will be limited to Mumbai, Delhi, Pune and Gurugram. Tesla had initially aimed for 2,500 cars in the first year, but high import duties forced the target to be reduced.

High price a major hurdle

One of the biggest challenges Tesla faces in India is its price. The starting price of 60 lakh rupees for the Model Y is far higher than the average price of electric cars sold in India, which is around 22 lakh rupees. High import duties push Tesla’s prices up even more.

In the first half of 2025, only 2,800 premium electric cars priced between 45 lakh and 70 lakh rupees were sold in India. During the same period, Chinese company BYD sold more than 1,200 units of its Sealion 7 SUV, which starts at 49 lakh rupees. This highlights how pricing limits Tesla’s reach in the Indian market.

Tesla Model Y launch in India

Tesla officially launched the Model Y in India on July 15, when it opened its first showroom at Bandra Kurla Complex in Mumbai. On the same day, the Model Y was introduced to customers.

According to the company, the Model Y can run up to 622 kilometers on a single full charge. The SUV comes with eight airbags and advanced driver assistance systems (ADAS) at Level 2 for enhanced safety.

Variants and pricing

Currently, Tesla is selling only the Model Y in India. The starting ex-showroom price for the Rear Wheel Drive variant is 60 lakh rupees. The Long Range Rear Wheel Drive version is priced at 68 lakh rupees. In comparison, the same car costs about 28 lakh rupees less in the United States. In global markets, the Model Y is also available in All Wheel Drive versions, but these are not offered in India yet.

Features of the Model Y exterior

The updated exterior of the Model Y includes redesigned wheels, tires, and brakes for smoother ride quality. A unique cross-car tail lamp has been introduced, which is the world’s first indirect reflective taillight design. The suspension has also been retuned for comfort.

Features of the Model Y interior

Inside the cabin, the Model Y features ambient interior lighting, refined materials, and ventilated seats in the front row. The second-row seats are power-folding for flexibility. At the rear, there is an 8-inch Bluetooth-compatible touchscreen for passenger use.

The car also has acoustic glass on all sides for a quieter cabin. Invisible speakers blend with the minimalist design but deliver powerful audio performance.

Government support for EVs in Maharashtra

The Maharashtra government has been one of the most proactive states in promoting electric mobility. Apart from toll waivers and purchase of electric buses, the state has also facilitated charging infrastructure development. The minister said he hopes Tesla’s arrival will further boost interest in electric mobility across urban and rural areas alike.

Tesla’s challenge and potential

While the initial delivery marks a milestone, Tesla’s challenge in India will be balancing its premium pricing with the growing demand for affordable EVs. With rising fuel prices and government incentives, the EV market is expanding, but success will depend on whether Tesla can either localize production or bring down costs.

Nutshell pointers:

• Maharashtra Transport Minister Pratap Sarnai bought India’s first Tesla Model Y on September 5 in Mumbai.
• He said his aim is to spread awareness about electric vehicles and gifted the car to his grandson.
• Model Y Rear Wheel Drive costs 60 lakh rupees ex-showroom, while the Long Range version is priced at 68 lakh rupees.
• Tesla has received only 600 orders since July, far less compared to its global pace.
• High import duties push Tesla’s prices much higher than average electric cars in India.
• The car can run 622 kilometers on a single charge and comes with advanced safety features.
• For now, deliveries are limited to Mumbai, Delhi, Pune and Gurugram, with 350 to 500 cars expected this year.