Tesla has finally entered the Indian market with its first showroom in Mumbai, but at a steep price tag of around $71,000 for its Model Y car. The company is facing challenges in the global market due to slumping sales and Elon Musk’s political entanglements.
However, entering India could be a boost for Tesla as the country has a large middle class and untapped buyers. Indian tariffs on foreign autos have been a major obstacle, but Tesla is working to overcome this hurdle.
The company had planned to enter India several years ago, but high tariffs have delayed its plans. Now, with trade talks between the US and India underway, Tesla may benefit from lower tariffs.
Tesla’s global sales are suffering due to increased competition from legacy automakers and Chinese EV makers like BYD. The company is also facing internal challenges, including a departure of key sales executives.
Despite these challenges, Tesla remains committed to expanding into new markets. The company has plans to build plants in India and other countries, but its existing capacity is currently not matched by demand for its vehicles.
The Indian market presents an opportunity for Tesla to boost sales and increase revenue. With the expiration of a federal tax credit at the end of September, the Model Y’s price will decrease to $37,500. However, it remains unclear how long this new pricing strategy will be in effect.
Source: https://edition.cnn.com/2025/07/15/business/tesla-india-ev