Tesla makes India debut with first Model Y delivery in Mumbai

Tesla’s entry into India comes after years of anticipation but has so far fallen short of expectations.

By  Storyboard18| Sep 5, 2025 5:15 PM
Tesla makes India debut with first Model Y delivery in Mumbai
Tesla’s entry into India comes after years of anticipation but has so far fallen short of expectations.

Elon Musk’s Tesla has officially entered the Indian market, with Maharashtra Transport Minister Pratap Sarnaik taking delivery of the first Model Y in Mumbai on Friday. The handover took place at the US carmaker’s newly opened showroom in the Bandra Kurla Complex, marking Tesla’s first customer delivery in the country.

In a post on X, Sarnaik said he had purchased the vehicle to promote awareness of electric mobility, particularly among younger generations. He told PTI that he took delivery of the Tesla to spread awareness about electric mobility among citizens, especially the younger generation. "I want children to see these cars early and understand the importance of sustainable transportation,” he said to PTI, adding that he would gift the car to his grandson as a symbolic gesture.

Slow start for Tesla India

Tesla’s entry into India comes after years of anticipation but has so far fallen short of expectations. Since bookings opened in mid-July, the company has received just over 600 orders, according to Bloomberg — a modest figure for a brand that delivers that many cars globally in a matter of hours.

The company expects to ship between 350 and 500 vehicles to India this year, with its first consignment arriving from Shanghai in early September. Deliveries will initially be restricted to Mumbai, Delhi, Pune and Gurugram, reflecting Tesla’s limited launch footprint.

Import duties dampen demand

Tesla had originally aimed to sell as many as 2,500 cars in India this year. However, steep import duties have pushed the price of its entry-level Model Y above ₹60 lakh, far higher than the average price of an electric vehicle in India, which is around ₹22 lakh. The higher cost has dampened demand in a price-sensitive market, despite growing interest in EV adoption.

Tesla’s move into India nonetheless marks a significant step for the company as it seeks to expand its presence in one of the world’s fastest-growing automotive markets, even as pricing and regulatory challenges remain.


Tags
First Published on Sep 5, 2025 5:27 PM

More from Storyboard18