Kamal Ghorui
MUMBAI: Even as it contends with slow sales and stiff competition from rivals, Elon Musk’s Tesla is expanding into India with a new product launch and wider coverage of its service centres and charging stations in the country. On Wednesday, the electric vehicle (EV) giant launched its six seater Model Y L variant in India, as it targets affluent local households looking to spend on spacious cars. Tesla’s India head Sharad Agarwal said the firm wants to “disrupt” the luxury SUV market here. The US-based company will compete with players such as Mercedes-Benz and MG in the luxury three-row EV category.Tesla forayed into India in July 2025 with its Model Y SUVs, having delayed its entry into the market for several years over high tariffs, limited flexibility and charging infrastructure challenges. Despite launching with much fanfare, its growth in India has been sluggish—Tesla recorded 342 vehicle registrations in FY26, data from Federation of Automobile Dealers Associations (FADA) showed. The firm is also understood to have offered discounts of up to Rs 2 lakh on select variants of Model Y to clear its inventory. Tesla imports the cars it sells in India, paying steep duties for them which is why they are priced way higher here compared to what it costs consumers in other markets.Tesla plans to expand its network of charging stations across major cities besides setting up body shops in Bengaluru, Hyderabad, Chennai and Ahmedabad. “We are building block by block a very strong foundation for the business and the brand in future, focusing on building the entire ecosystem in India,” Agarwal said. Deliveries for the new Model Y L, starting at Rs 61.99 lakh will begin from this quarter. EVs currently make up about 4-5% of total car sales in India.
