Tesla begins deliveries in India with China-made Model Y starting from 69,000 USD
Tesla has officially begun customer deliveries in India. According to Tesla’s Global Vice President Grace Tao, who made the announcement on September 27, 2025, all vehicles in this initial delivery batch were manufactured at the company’s Shanghai Gigafactory.
“Congratulations to our new owners! We look forward to Tesla’s products and services bringing a smooth and comfortable travel experience to more consumers around the world,” Grace stated in her announcement.
This delivery milestone comes two months after Tesla opened its first showroom in India in July, officially signalling the company’s entry into the world’s third-largest automotive market. The entry follows years of negotiations and delays, with Tesla CEO Elon Musk first mentioning plans to sell in India more than nine years ago in April 2016.
The Model Y is Tesla’s initial offering in India, with the rear-wheel drive version starting at 5.989 million rupees (69,000 USD) and the long-range rear-wheel drive version priced at 6.789 million rupees (79,000 USD). These prices are significantly higher than in other markets due to India’s substantial 70% import tariff on electric vehicles.
Electric vehicle penetration remains below 5% of the overall automotive market, so Tesla faces considerable challenges in India. The luxury vehicle segment that Tesla’s pricing puts it in represents just 1% of total vehicle sales in the country.
Tesla’s entry comes at a critical time for the company, which has experienced sales declines in its established markets in Europe, China, and the United States during the first half of 2025. The company appears to have abandoned earlier plans to build a manufacturing facility in India, opting instead to import vehicles despite the high tariffs.
Tesla reportedly plans to open additional showrooms and charging stations in Delhi and other major Indian cities to support its expansion in the country.
