Tesla likely to enter India with pricier Model Y, bookings to open in Q2 2025

Tesla Inc plans to enter the Indian market with the refreshed Model Y, which will be imported from Germany, a person familiar with the matter said.

The US-based electric vehicle (EV) maker is likely to begin taking bookings in the second quarter of 2025, with deliveries expected in the third quarter. Initial sales will be limited to Mumbai and Delhi, with an annual target of 2,500 units, the person said.

The Model Y, expected to be priced between ₹70 lakh and ₹90 lakh ($84,000-$108,000), will be Tesla’s first offering in India, rather than the cheaper Model 3 sedan or the smaller, in-development Model 2. The Model Y offers a larger SUV-style design with higher towing capacity and additional features compared to the Model 3.

Tesla will import the pricier Model Y from its Berlin factory as it produces right-hand-drive units. The right-hand-drive Model 3, produced in Shanghai, is unlikely to be part of the initial rollout due to restrictions on Chinese car imports.

The premium Model S and Model X, as well as the Cybertruck, are unlikely to be introduced in India as they are manufactured exclusively in left-hand-drive configuration, making them incompatible with the Indian market, according to NDTV Profit.

Tesla hiring in India

Tesla has begun hiring in India, posting 13 job openings for customer service and backend roles on LinkedIn, signalling an imminent market entry. Positions such as service technicians and advisors are available in Mumbai and Delhi, while customer engagement and delivery operations specialists are listed for Mumbai.

Tesla’s engagement with India has been inconsistent in recent years, largely due to concerns over high import duties. However, the government recently reduced customs duties on high-end cars priced above $40,000 from 110% to 70%, a move that could ease Tesla’s entry.

Reports suggest that Tesla could benefit from a reduced 15% import duty contingent on manufacturers achieving designated investment and production targets.

India’s EV market presents Tesla with an opportunity to counter slowing global sales, after the company recently reported its first annual decline in EV sales in over a decade.

US President Donald Trump recently criticised Tesla CEO Elon Musk’s plans to establish a factory in India, calling it "very unfair" to the United States. In an interview with Fox News, Trump blamed high Indian tariffs for pressuring US automakers to expand production abroad, arguing that foreign countries take advantage of the US through trade policies.