Tesla launched on Tuesday its Model Y at about $70,000 in India, a significant markup relative to its other major markets, reflecting the country's high tariffs on electric vehicle imports which CEO Elon Musk has long-criticised.

Tesla’s long-awaited India debut comes as the government considers lowering EV import duties in a U.S. trade deal.

Maharashtra Chief Minister Devendra Fadnavis inaugurated Tesla’s first showroom in India on Tuesday (15 July), marking a milestone in the country’s electric vehicle sector, reported The Indian Express.

According to Bernstein analysts, Tesla has not signed up for India’s new EV policy, which offers a lower 15% duty for vehicles over $35,000 in exchange for a commitment to local manufacturing.

Tesla's long-awaited entry into the Indian market focuses on a careful strategy with the launch of the Model Y amid evolving consumer behavior and market dynamics. Explore how Tesla navigates this competitive landscape and its implications for the luxury car segment.

Experts told CNBC that Tesla will compete in the premium segment of the market with the likes of BMW, rather than with local EVs like those from Tata Motors.

Tesla Inc. is opening its first India showroom as Elon Musk’s electric-vehicle maker looks to ply new markets and offset slowing sales where it’s already well established.