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.

As Tesla’s first car for India, the Model Y will directly rival established luxury EV players such as the BMW X1 Long Wheelbase, Volvo C40, BYD Sealion 7, and Mercedes-Benz EQA.

Tesla launches the Model Y in India at $69,770, its highest global price, as it opens its first showroom in Mumbai and tests the premium EV market.

In the US, the Tesla Model Y starts at $37,490, which converts to around Rs 31 lakh. But in India, the on-road price begins at Rs 61.07 lakh.

Tesla Inc. opened its first India showroom, showcasing Model Y cars with a starting price of nearly $70,000, as Elon Musk’s electric-vehicle maker looks to tap new markets and offset slowing sales where it’s already well established.