Tesla starts testing new Model Y in India

Social media user Ashish Pol posted two short videos showing Tesla testing a camouflaged right-hand drive prototype of the new Model Y on the Mumbai-Pune Expressway in Maharashtra. The clips solidify the speculation in the media that Tesla plans to enter India with its global best-seller. Tesla submitted new homologation applications for the Model 3 and Model Y in India last month.

Tesla manufactures only the Model 3 and Model Y in right-hand drive at the moment. Considering the immense popularity of SUVs and the poor road conditions in India, the latter is the most suitable choice from its portfolio. Then there is also the fact that the company makes the RHD Model 3 only in China and India does not encourage imports from the neighbouring country due to geopolitical conflicts. “Suppose he [Elon Musk] wants to manufacture in China and sell in India, it cannot be a good proposition for India,” Nitin Gadkari, the Union Minister for Road Transport and Highways, said at a conference in 2022.

Last year, Tesla started manufacturing the RHD version of the Model Y in Germany and shipping it to the UK and Ireland. In the coming months, the German factory will likely serve the Indian market as well. Reports suggest the company has no plans to manufacture the Model Y in India or even conduct its final assembly locally from knocked-down kits—an approach most global automakers typically use for premium and luxury cars to circumvent India’s steep tariffs.

India is discussing a free trade agreement (FTA) with the EU and aims to finalise it by the year-end, and perhaps, Tesla is counting on a steep customs duty reduction as an outcome of this deal. The auto sector is one of the key areas of this FTA, with an EU official saying that “without substantive commitments on cars, there will not be a trade agreement between the European Union and India.”

Tesla is also likely working on bringing its Supercharger network to India. The company has posted 25 job openings in India, including one for a ‘Charging Developer’ to help it set up charging stations and a ‘Field Service Technician’ for troubleshooting and repair work at these locations.

Tesla aims to establish a retail presence in three key metro cities—Delhi, Mumbai, and Bengaluru—targeting northern, western, and southern regions of India, respectively. Local publications say the company has signed a five-year lease for a showroom in Bandra Kurla Complex (BKC), an upscale commercial hub in Mumbai. It plans to kick off sales around the third quarter (July-September 2025).

x.com, mokahr.com (job openings)