American electric car maker Tesla has opened a showroom in Mumbai, its first in India, according to Reuters.
The website has started accepting orders for the Model Y. The rear-wheel-drive crossover will cost around 6 million rupees ($70,000), which is the highest price in the company’s core markets, the agency notes.
Deliveries of electric vehicles are expected to begin in the third quarter.
Tesla will compete mainly with German luxury brands, including BMW and Mercedes-Benz, rather than local mass-market electric vehicle manufacturers such as Tata Motors and Mahindra.
The Tesla models presented in Mumbai were manufactured in China, as the company’s US factories do not produce right-hand drive cars, which are used in India.
India is the world’s third-largest car market, and its development could help Tesla offset slowing sales in other regions.
Tesla’s top management has previously noted that the main obstacle to the company’s entry into the Indian market is high import duties, which reach 70% for foreign-made cars costing up to $40,000. In Germany, the duty is 46,000 euros ($53,700).