Tesla Set For India Launch In Second Half Of 2025 With Model Y In Tow

Tesla Inc. is set to enter India in the second half of 2025 and not any time sooner. The pricier Model Y will be launched first, and not the cheaper Model 3 or the “work-in-progress”  Model 2.

The US-based electric car maker will import fully built Model Y from Berlin as the SUV is manufactured in right-hand drive configuration in that location, three people aware of the thinking at Elon Musk’s company told NDTV Profit. The right-hand-drive Model 3 is made in Shanghai, but that’s unlikely to come first due to constraints on Chinese car imports.

The Tesla Model S, X and Cybertruck are unlikely to come to India as they are manufactured in left-hand drive configuration only. The Model 2, a previous iteration of which became the Robotaxi, is rumoured to be under development at Giga Texas and not Berlin.

There are currently no plans for local assembly of Tesla cars, these people said. The plans can change, as they did last year when Musk cancelled an India visit at the last minute. The Model 3 and Y first made their way to India’s shores in 2021 for testing purposes.

According to the people aware of the matter, Tesla—which has an office in Pune—is scouting for locations in Bandra-Kurla Complex in Mumbai and Aerocity in Delhi to set up their first showrooms in India. That was reported first by Reuters on Tuesday.

The Tesla Model Y, upon launch, would cost Rs 60-70 lakh, considering revised import duty structure. That would position it against the entry-level EV offerings of Mercedes-Benz, BMW and Audi.

“Tesla is set to disrupt whichever segment it enters India with,” Gaurav Vangaal, associate director for light vehicle production forecasting at S&P Global, told NDTV Profit over the phone on Tuesday.

While he didn’t hazard a guess at which price points Tesla’s cars will sit at, he said anything higher than Rs 50 lakh will eat into the market share of the Germans (Mercedes-Benz, Audi and BMW), and anything close to Rs 25-35 lakh would be worrisome for Indians (Tata Motors and Mahindra).

“Tesla would ideally take a top-down approach to its India play—enter with completely built-up units and then follow it up with completely knocked-down kits,” Vangaal said. And if and when it comes, it’ll bring the full package: vertically stacked manufacturing, and the complete battery and charging ecosystem.

Additionally, Tesla enjoys a brand equity bar none, Vangaal said. “So, while we may take time to warm up to a Vinfast or BYD, Tesla is already well-known. Aspirational even.”