MUMBAI: Despite slow sales and stiff competition from rivals, Elon Musk’s Tesla is expanding in India with a new product launch and wider coverage of service centers and charging stations in the country.
The electric vehicle (EV) giant on Wednesday launched the six-seater YL model in India, targeting affluent local households looking to spend on spacious cars. Sharad Agarwal, Tesla’s India president, said the company 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 electric vehicle segment.Tesla entered India in July 2025 with its Model Y SUV, after delaying its entry into the market for several years due to high tariffs, limited flexibility and charging infrastructure challenges.
Despite launching to much fanfare, its growth in India has been slow, with Tesla registering 342 vehicle registrations in FY26, data from the Federation of Automobile Dealers Associations (FADA) showed. The company is also understood to have offered discounts of up to Rs 2 lakh on select variants of the Model Y to clear its stock.
Tesla imports the cars it sells in India and pays hefty duties on them, which is why their prices are much higher here compared to what they cost consumers in other markets.
Tesla plans to expand its network of charging stations across major cities besides setting up auto body shops in Bengaluru, Hyderabad, Chennai and Ahmedabad. “We are building a very strong foundation for the future business and brand, block by block, with a focus on building the entire ecosystem in India,” Agarwal said. Deliveries of the new YL model, starting at Rs 61.99 lakh, will begin from this quarter. Electric vehicles currently account for about 4-5% of total car sales in India.
