Tesla to Begin Selling Model Y in India by Mid July, CBUs Being Imported from China: Report

The years-long wait for Tesla to officially enter the Indian EV market might be almost over. A new Bloomberg report, citing unnamed people familiar with the situation, puts the launch date at mid-July. The first model to go on sale here will be the Tesla Model Y SUV in a rear-wheel drive configuration. The cars will be imported from the company’s Gigafactory Shanghai facility as CBUs, and imports have already begun to arrive. 

According to the report, Tesla’s first showroom, which is coming up in Mumbai, will officially open in the middle of July with the Delhi NCR location following shortly after. The company has not made any official announcements yet, but also has not appointed a replacement for former country head Prashanth Menon, who left the company last month. 

The Model Y is likely to be priced starting at ₹48.5 lakh in India (excluding taxes), based on Bloomberg’s analysis of documents it has seen, and Indian import duties. Previous reports, news of job openings, and sightings of test cars in India suggest that this will be the recently refreshed “Juniper” version of the Model Y. Other models have not been confirmed, though the Model 3 is also likely to be offered here soon to target a lower price point. Both models are manufactured at the same facility in China. Tesla is also going to sell imported accessories and merchandise, as per the report. 

Tesla has been trying to launch in India for several years now, but plans were put on hold in 2022 after negotiations around import tariffs and local manufacturing failed. Various Indian state governments have approached the company hoping to land a deal to build a Gigafactory in the country, though no local manufacturing plans have materialised yet. CEO Elon Musk was supposed to visit India in 2024 to finalise launch plans, but cancelled his trip. He did however meet Prime Minister Narendra Modi in the US earlier this year. 

The launch comes as Tesla’s market share has declined sharply in many parts of the world including the US, Canada, Europe, and China. The company faces new competition from Chinese EV makers, particularly BYD, and has lost favour with many buyers due to Musk’s recent political activities. Another of his companies, SpaceX, is also seeking permission to launch Starlink satellite Internet services in India and is reportedly close to launching too.