Tesla entered India this week with its first showroom in Mumbai — launching the Model Y with a price tag of $70,000. The showroom saw heavy footfall on Day 1 as buyers from various parts of the country joined curious onlookers to lock in deals. Initial booking requires a payment of Rs 22,000 with an additional down payment of about Rs 3 lakh due within a week. But with prices proving a deterrent for some Tesla enthusiasts, social media has turned to an unlikely solution.
A LinkedIn user made waves on Thursday after explaining that the newly-introduced vehicles could be purchased through ‘fractional ownership’. Put more simply, this would mean that multiple Indian buyers would have 8.33% ownership of the Tesla car — getting 30 days of use per year.
Deliveries are expected to begin from the third quarter of 2025 with the US automaker targeting a niche electric vehicle segment that accounts for just 4% of overall sales in the world’s third-largest car market. The LinkedIn user explained that she had come across a representative from fractional car ownership platform Prorata during the inaugural event in Mumbai.
What is fractional ownership?
“You don’t buy the Tesla 100%…rather you co-own with a bunch of people (who live near by you) for as low as 8.33% only. ow it works (in 30 seconds): You buy 1 ticket at ₹5–6 lakh. That gives you 8.33% ownership of the Tesla. Which gives you 30 days of use per year, for 5 years. After 5 years, they sell the car, and you get approximately Rs 2 lakh to Rs 3 lakh back as your resale share. Simple,” Rupal Madhup explained in a lengthy post.
The hefty price tag — in part due to high tariffs and related duties — means the Elon Musk-led company will mainly compete with German luxury giants such as BMW, Mercedes-Benz and South Korea’s Kia rather than domestic mass-market EV players such as Tata Motors and Mahindra.
“I was at the Tesla Experience Centre launch in Mumbai. Huge energy. Packed crowd. Everyone wanted a glimpse, a selfie, or a test ride. Easy to see why. But the reality is… the same car that sells for $35,000 in the US (approximately Rs 30 to Rs 35 lakh) is launching here at Rs 60 to Rs 70 lakh, thanks to the taxes and duties,” Madhup noted.
But with an on-road price up to Rs 70 lakh Tesla remains an unlikely choice for most Indians seeking their first car or electric vehicle. The LinkedIn user noted that the price tag also meant that many would prefer cars such as BMW, Audi, or Mercedes while considering costs.
Why is Tesla so expensive in India?
Tesla’s Model Y rear-wheel drive is priced at about Rs 6 million ($70,000), while its Model Y long-range rear-wheel drive costs Rs 6.8 million. The prices include the tariff and additional levies imposed by the state but no exact breakdown is available. One of the key factors is the extremely high import duties imposed by India on fully built imported cars (CBUs)—often between 60% and 100% of the car’s value.
The US EV maker has long lobbied New Delhi for lower import tariffs on cars, and Indian officials remain in talks with their American counterparts to lower the levies under a bilateral trade deal. Tesla’s US factories also do not currently make the right-hand drive vehicles that are used in India. The company’s Full Self-Driving capability is on offer at an additional cost of 600,000 rupees, but the website said that “active driver supervision” will be required, and the current features do not make the vehicle autonomous.