Tesla is set to launch a family-sized electric SUV in India by the end of April. This six-seater, known as the Model Y L, features three rows of seats and will arrive from the Shanghai factory to help the carmaker regain its footing in a difficult market. After a sluggish start in the country, the firm hopes this larger variant will attract buyers looking for more space than the standard model.

Tackling high costs and infrastructure

The move follows a challenging 2025, during which Tesla registered just 227 vehicles across India. To clear unsold stock earlier this year, the company offered discounts of up to 200,000 rupees. High import duties, sometimes reaching 110%, remain a significant barrier for the American giant. Despite these hurdles, the company is doubling down on its "experience" strategy, recently opening its largest sales and service centre in Gurugram.

Tesla aims to convince motorists that the high initial price is offset by long-term savings. Its leadership claims owners can save up to two million rupees over four years on petrol and upkeep. Because many repairs are handled remotely via software, maintenance costs are kept low. Charging is also much cheaper than fuel, though India's infrastructure is still catching up. With only about 25,000 charging points nationwide, Tesla is expanding its own network of rapid "Superchargers" to reduce range anxiety.

Global pressure and local imports

Globally, the company is under pressure after losing its top spot to China’s BYD last year. In India, Elon Musk continues to favour an import-led approach rather than building cars locally, despite government incentives designed to lure manufacturers. For now, the focus remains on refreshing the current line-up and strengthening the ecosystem to turn the tide in Asia's third-largest economy.