The Indian automotive industry hits a milestone on July 15, 2025, as two global electric vehicle giants – Tesla and VinFast – officially step into one of the world’s largest car markets. With India emerging as a critical destination for EV expansion, the entry of Tesla and VinFast on the same day is nothing short of historic.
Tesla’s First Official Entry: A South Asian Leap
After years of anticipation and regulatory hurdles, Tesla, led by Elon Musk, has launched its first showroom in Mumbai’s Bandra-Kurla Complex (BKC). This marks Tesla’s official entry into the South Asian market, where its Model Y and Model 3 are expected to lead the charge.
Tesla’s debut in India is more than symbolic. With declining sales in Europe and increasing pressure from affordable Chinese EVs, India’s growing electric vehicle market has become vital for Tesla’s global rebound.
The company is initially bringing in CBU (Completely Built Units) from China, with a small initial batch already delivered. The Mumbai showroom will function as both a sales outlet and experience center, letting potential customers get a first-hand feel of Tesla’s technology.
Why India Matters to Elon Musk
According to data from the European Automobile Manufacturers Association (ACEA), Tesla’s car sales in Europe dropped by nearly 28% in May 2025. With high competition and price-sensitive consumers, Tesla now views India as the next frontier for growth.
India’s updated Electric Vehicle Policy has made Tesla’s entry more feasible. Import duty on EVs above $40,000 has been cut to 70% from the earlier 110%, and for EVs below $40,000, there’s now a potential 15% concession. In return, Tesla must commit to a minimum investment of ₹4,150 crore (approx $486 million) and begin local manufacturing within five years.
Tesla Cars Likely to Launch in India
Tesla has filed homologation applications for its Model Y and Model 3, signaling that these two are likely to be launched first. The Model Y, a mid-size electric SUV with a global range of up to 574 km per charge, is expected to lead the portfolio. Other models like the Model X may arrive later, although pricing might limit its reach.
Expected Tesla Car Prices in India
Due to high import duties, Tesla’s vehicles will not be cheap in the beginning. Experts estimate that the starting price for Model Y or Model 3 could range between ₹60 to ₹65 lakh. However, if demand grows, Tesla might introduce a more affordable, India-specific model in the future.
VinFast’s Aggressive Strategy: Made in India, for India
Unlike Tesla, Vietnam’s VinFast is coming in with a highly localized strategy. The company is not just selling cars in India — it’s building them too.
VinFast has already partnered with 32 dealerships in 27 cities, and official bookings for its electric SUVs VF6 and VF7 begin today. Both are stylish, tech-loaded, and price-sensitive — aimed squarely at India’s middle and upper-middle-class EV buyers.
VinFast’s Massive Investment in Tamil Nadu
In January 2024, VinFast signed an MoU with the Tamil Nadu government to build a massive EV and battery manufacturing plant in Thoothukudi. Spread over 400 acres, this facility has already begun trial operations and will aim to produce 50,000 vehicles in its first year, scaling up to 1.5 lakh units annually.
The company has pledged to invest $2 billion over several years, generating over 3,500 local jobs, showcasing its serious commitment to India.
VinFast VF6 and VF7: Specs That Matter
VF6 is a compact SUV measuring 4,241 mm in length and offering up to 480 km of range per charge. It packs a 59.6 kWh battery, generating 201 hp power and 310 Nm torque. It will likely be priced in the ₹25–30 lakh range.
VF7, on the other hand, is a larger SUV with AWD capabilities, two battery options (up to 70.8 kWh), and a range of 498 km. Its price may fall between ₹45–50 lakh, making it a direct competitor to premium EVs in India.
Where Can You Find VinFast?
VinFast has already established a strong network, with showrooms now active in Delhi, Bengaluru, Pune, Hyderabad, Ahmedabad, Kochi, Kolkata, Chennai, and more. The brand has even showcased its models at major malls in these cities, creating early buzz among potential buyers.
India’s EV Market: Heating Up
With Tata Motors, Mahindra, MG Motor, and now Tesla and VinFast in the mix, India’s EV market is rapidly becoming one of the most competitive in the world. The next five years could define which brand becomes a household name.
The key will be a balance of affordability, range, service network, and government incentives. While Tesla brings innovation and brand value, VinFast brings scale and pricing power — and both are here to change the game.
Final Thoughts
India is no longer just a growing car market — it is now a global EV battleground. With Tesla’s premium presence and VinFast’s local-first strategy, Indian consumers are about to experience a new era in electric mobility. Whether you’re an early adopter or a curious observer, 2025 will be the year to watch.