With delivery estimated to start from the third quarter, Tesla will drive on to India's busy roads, targeting a niche premium EV segment that accounts for just 4% of overall sales in the world's third-largest car market.

Tesla’s long-awaited India debut comes as the government considers lowering EV import duties in a U.S. trade deal.

Tesla inaugurated its first showroom in India on Tuesday, located in Mumbai. The launch was followed by a dramatic showcase on Wednesday when Deputy Chief Minister Eknath Shinde drove a Tesla car into the state legislature premises,

With its sales cratering in the West, the electric vehicle giant is making a high-stakes pivot to the world's third-largest auto market.

Experts told CNBC that Tesla will compete in the premium segment of the market with the likes of BMW, rather than with local EVs like those from Tata Motors.

The Tesla Model Y Pearl White Multi-Coat RWD costs Rs 62,02,640 in Delhi and Rs 62,03,140 in Mumbai. While the RWD Long Range is priced at Rs 70,10,640 in Delhi and 70,11,140 in Mumbai.

CM Fadnavis called Tesla's decision to open its first centre in Mumbai a statement of confidence in the city and state.

Tesla has started selling cars in India, the world’s most populous country – but at a hefty price tag. Tesla, which is facing slumping sales and complications from CEO Elon Musk’s political entanglements,