Auto & Transportation
Tesla to Rival BMW and Mercedes in India, Not Tata or Mahindra
By Neelesh Pandey - 18 Jul 2025 05:35 PM
Tesla’s long-awaited entry into the Indian market has officially begun with the launch of the Model Y. Priced at ₹67 lakh and above, the car isn’t aimed at the average commuter. Instead, Tesla is positioning itself alongside premium brands like BMW and Mercedes-Benz. The company’s approach makes it clear: it’s here for the high-end segment.
The Model Y’s features and pricing truly stand out. With over 500 km of range, quick acceleration, and Tesla’s signature minimalist style, this vehicle combines impressive performance with cutting-edge technology that luxury buyers will appreciate. Although India’s EV market has been expanding quickly, most options—such as Tata’s Nexon EV or Mahindra’s XUV400—mainly focus on affordability. Tesla’s pricing, however, positions it in a whole different league, making it an exciting choice for those looking for top-tier quality.
This also means Tesla isn’t directly competing with India’s homegrown EV makers. While Tata and Mahindra lead in accessible electric cars, Tesla is betting on a niche that prefers global brands and premium features. It's more likely to be cross-shopped with a Mercedes EQB or BMW iX than with any Indian-made EV.
Tesla's strategic actions may establish a precedent for forthcoming international electric vehicle (EV) manufacturers considering entry into the Indian market. Should the Model Y attract substantial interest among affluent urban consumers, it could facilitate the introduction of additional luxury EV models into the market sector. Currently, Tesla is not targeting mass-market consumers; rather, it is concentrating on a select clientele capable of affording its premium pricing.
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