Tesla Drives into India: Pricing and Expansion Strategy Revealed

Tesla, led by tech mogul Elon Musk, sets the price of its Model Y at $69,770 in India, marking one of the highest among major markets as it opens its first showroom in Mumbai. The electric vehicle maker targets India's premium EV segment, competing with luxury brands like BMW and Mercedes-Benz.

In a strategic move, Tesla, under the stewardship of tech billionaire Elon Musk, announced the pricing of its Model Y at around $69,770 in India. This pricing places India among the higher-priced markets for Tesla, as it prepares to inaugurate its first showroom in Mumbai on Tuesday. The move is part of Tesla's entry strategy into India, a country noted for its burgeoning automotive sector.

With the launch, Tesla aims to tap into the niche premium EV market segment, which currently holds a modest 4% of the country's overall automotive sales. The Model Y is set to compete with luxury automotive names such as BMW and Mercedes-Benz, rather than with local mass-market brands like Tata Motors and Mahindra. The rear-wheel-drive Model Y costs approximately 6 million rupees, while the long-range variant is priced at 6.8 million rupees.

This pricing contrasts with other international market prices, like $44,990 in the U.S., 263,500 yuan ($36,700) in China, and 45,970 euros ($53,700) in Germany. Despite challenges like high import duties and excess production capacity, Tesla has chosen to ship imported models to India. The Mumbai showroom opening saw significant media presence and official attendance, although Tesla maintained a controlled and understated launch approach.

(With inputs from agencies.)