Tesla, VinFast Set for India EV Faceoff with Showroom Launches, Pre-Bookings, and Competitive Market Push
India’s premium electric vehicle (EV) space is set for a high-voltage showdown as Tesla and VinFast prepare to make bold moves in the Indian market this July. While Tesla gears up to open its first experience center in Mumbai, Vietnam’s VinFast is rolling out nationwide pre-bookings for its electric SUVs—marking a pivotal moment in India’s evolving EV landscape.
Tesla to Launch Model Y in India with Mumbai Showroom
According to media reports, Tesla will launch its first Indian showroom—dubbed an “experience centre”—on July 15 at Maker Maxity Mall in Mumbai’s Bandra Kurla Complex. The company is expected to debut its Model Y, priced at around ₹55 lakh, leveraging the revised import duty concessions under India’s new EV policy.
Tesla’s long-awaited India entry had been stalled for years due to high import tariffs. Until recently, completely built units (CBUs) were taxed at 110%, making premium EVs unaffordable for many. However, in a bid to attract global players like Tesla, the Union Budget 2025–26 reduced duties to 70% on EVs priced above $40,000 (approx. ₹35 lakh).
The updated EV policy also allows:
- Up to 15% duty on EVs priced below $40,000 (if manufacturers commit ₹4,150 crore investment and local production within 5 years)
- Import cap of 8,000 units per year
- Total customs benefits capped at the lower of ₹6,484 crore or actual investment
Since none of Tesla’s current models fall under the $40,000 range, the company’s offerings in India will still attract at least 70% import duty. That said, the launch of the Model Y could help Tesla test India’s premium EV appetite.
VinFast Counters with Local Manufacturing and Nationwide Pre-Bookings
In contrast, VinFast is going all-in with a locally grounded strategy. The Vietnamese automaker has partnered with 32 dealerships across 27 cities and will begin pre-bookings on July 16 for its VF6 and VF7 electric SUVs—priced at approximately ₹25 lakh and ₹50 lakh, respectively.
“As we prepare to bring our electric SUVs to Indian roads, our focus is to ensure seamless access to VinFast’s world-class products and service infrastructure,” said Pham Sanh Chau, CEO of VinFast Asia.
What sets VinFast apart is its aggressive localization strategy. The company began construction on its $2 billion manufacturing facility in Thoothukudi, Tamil Nadu in 2024, which is slated to go operational by the end of this month. The plant is expected to produce 50,000 units in its first year, ramping up to 150,000 annually, and will also support exports to the Middle East and Africa.
VinFast is also exploring further expansion in Andhra Pradesh and Telangana, positioning itself as a long-term player in India’s EV ecosystem.
Tesla vs VinFast: What It Means for India’s EV Market
While both companies bring global credentials, their approach to the Indian market is starkly different. Tesla is targeting the luxury EV segment, while VinFast is entering the mid-premium bracket with a local production advantage.
Analysts believe Tesla’s entry is unlikely to shake up the mass EV market immediately, given its premium pricing and CBU-based strategy.
“Unless Tesla introduces cost-efficient models for India, it may not directly compete with domestic players,” noted a report from market intelligence firm Aranca. “However, the rising middle class and growing demand for premium EVs could create a niche market for Tesla.”
India’s EV segment is still nascent—EVs accounted for only 2.5% of the 4.3 million cars sold in 2024. The government, however, aims to increase this to 30% of all private vehicle sales by 2030, offering ample growth potential.
Local players such as Tata Motors, Mahindra Electric, MG Motor, and Hyundai continue to dominate the market with affordable, India-specific EVs benefiting from domestic incentives.
Meanwhile, a January report from ReportLinker said VinFast’s India push could be a landmark move in the company’s global expansion.
“VinFast is poised to make a considerable impact on India’s automotive sector. But success in this diverse and competitive market will require more than just technology—it will need deep localization and brand trust,” the report stated.
Conclusion: Global Giants Bet Big on India’s EV Future
With Tesla launching its first showroom and VinFast opening pre-bookings backed by a local factory, India’s EV market is entering a new era of global competition. While challenges remain—from affordability to infrastructure—the arrival of global EV giants signals growing confidence in India’s electric future.The Tesla vs VinFast faceoff could redefine how premium and mid-range EVs evolve in the country, giving Indian consumers more choice than ever before.
