Tesla Debuts $70K Model Y In India, Targeting Niche EV Market Amid Falling Sales

Tesla launched its Model Y in India on Tuesday, as the EV maker enters a new market while struggling with declining sales and excess capacity, according to Reuters. The model will sell for $70,000, its highest globally. Deliveries are expected in the third quarter, with Tesla targeting India’s luxury EV segment, which makes up just 4% of total car sales. The Model Y will compete with BMW and Mercedes-Benz, not local EV leaders Tata Motors and Mahindra. Tesla opened its first showroom in Mumbai and began taking online orders, importing cars from China for now, as its U.S. factories do not produce right-hand drive models. High import tariffs, which often exceed 100%, inflate prices; however, Tesla continues to lobby for lower duties as India and the U.S. explore a trade deal.