Tesla to sell Model Y cars in India, starting at $89k

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The Tesla showroom in Mumbai ahead of its opening on July 15.

PHOTO: REUTERS

MUMBAI – Tech billionaire Elon Musk’s Tesla has priced its Model Y at about 6 million rupees (S$89,600) in India, the highest among major markets, its website showed, as the electric carmaker geared up to open its first showroom in Mumbai on July 15.

With delivery estimated to start from the third quarter, Tesla will drive on to India’s busy roads, targeting a niche premium electric vehicle (EV) segment that accounts for just 4 per cent of overall sales in the world’s third-largest car market.

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

Tesla’s Model Y rear-wheel drive will set back buyers 6 million rupees, while its Model Y long-range rear-wheel drive costs 6.8 million rupees.

That compares with a starting price from US$44,990 (S$57,700) in the United States, 263,500 yuan (S$47,100) in China, and €45,970 (S$68,800) in Germany.

Grappling with excess capacity in global factories and declining sales, Tesla has adopted a strategy of selling imported vehicles in India, despite duties and levies running into roughly 70 per cent.

On July 15, the police guarded Tesla’s first showroom in India as media crowded outside the office complex where it is located and the Chief Minister of the western state of Maharashtra, home to the Indian commercial capital, arrived for the launch.

Inside the showroom clad in Tesla’s signature minimalist neutral tones, the Model Y was draped under black