What Makes the Tesla Model Y Costlier in India than in Other Countries?

Tesla has officially entered the Indian market, kicking off its journey with the launch of its first showroom in Mumbai's Bandra Kurla Complex. Leading this electric revolution is the Model Y, a global bestseller that now comes to Indian shores - but with a price tag that’s significantly higher than its international counterparts.

The Tesla Model Y Rear-Wheel Drive (RWD) variant is priced at ₹59.89 lakh, while the Long Range variant will set buyers back by ₹67.89 lakh (ex-showroom). On-road prices for these stand at ₹61.07 lakh and ₹69.15 lakh respectively. This makes the Model Y in India one of the costliest in the world.

To put that into perspective:

• In the United States, the Model Y starts at $46,630 (roughly ₹40.01 lakh)

• In China, it's priced at ¥263,500 (about ₹31.57 lakh)

• In Germany, it starts at €45,970 (around ₹46.09 lakh)

The key reason behind the inflated Indian pricing is that the Model Y is currently being sold as a Completely Built Unit (CBU). This means it’s imported fully assembled from Tesla’s Shanghai Gigafactory, which invites heavy import duties, logistics costs, and taxes, driving up the final price for Indian consumers.




Despite the premium, Tesla is betting big on India as it faces slowdowns in sales across China and Europe. The first batch of Model Y units has already been shipped from China to India, and deliveries are expected to start soon. Tesla also plans to install Supercharger stations in Delhi and Mumbai before customer handovers begin, ensuring infrastructure support from the get-go.

In terms of performance, the RWD Model Y in India comes with a single electric motor generating 295 hp, and offers two battery options: 60 kWh and 75 kWh. The smaller pack delivers a 500 km WLTP range, while the long-range model boasts up to 622 km on a full charge.

Tesla Y India Launch

Tesla isn’t skimping on features either. The Model Y comes loaded with:

• A 15.4-inch central touchscreen

• An 8-inch rear display

• Power-adjustable front seats and steering column

• Dual-zone automatic climate control

• A fixed glass roof

• 19-inch Crossflow wheels

• A powered tailgate

Customers can personalize their ride with seven exterior colors and two interior themes.

As Tesla makes its long-awaited debut in India, the Model Y aims to carve out a premium niche among electric SUVs - even if it comes with a premium price tag. Whether Indian EV buyers are ready to pay that price remains to be seen.