Tesla enters India with $70,000 Model Y launch

Tesla launched on Tuesday its Model Y at about $70,000 in India, a significant markup relative to its other major markets, reflecting the country’s high tariffs on electric vehicle imports which CEO Elon Musk has long-criticised.

- Reuters

With deliveries estimated to start from the third quarter, the US automaker is targeting a niche electric vehicle segment in India that accounts for just 4% of overall sales in the world’s third-largest car market.

It will compete mainly with German luxury giants such as BMW, Mercedes-Benz and South Korea's Kia rather than domestic mass-market EV players such as Tata Motors and Mahindra.

Tesla opened its first showroom in Mumbai on Tuesday and began taking Model Y orders onits website, marking its long-awaited entry into the market where Musk once had plans to open a factory.

For now, Tesla will import cars into a country where tariffs and related duties can exceed 100%, driving up the price for consumers.