Tesla is emphasizing long-term cost benefits to attract Indian buyers to its newly introduced Model Y, arguing that low running and maintenance costs could help customers recover roughly one-third of the vehicle’s price over several years.

The electric carmaker entered the Indian market in July with an imported Model Y priced at about $67,000—significantly higher than in most other regions due to India’s 100% import duty on fully built vehicles. With the majority of cars sold in India priced below $22,000, Tesla’s entry places it squarely in a niche segment within the world’s third-largest auto market.

Since deliveries began in September, just over 100 Model Y units have been sold, according to government registration data. Despite modest early figures, Tesla’s India General Manager Sharad Agarwal said the company’s focus is on educating buyers about long-term savings. He estimated that owners could save around $22,000 in maintenance and fuel costs over four to five years.

“Tesla does not provide a maintenance schedule because most of the service is done remotely through software updates, which reduces the cost of ownership. And the cost of home charging is one-tenth of petrol prices,” Agarwal told reporters in Gurugram, where Tesla opened its largest sales and service centre in the country on Wednesday.

Agarwal, who joined the company in November after previously leading Lamborghini in India, said Tesla’s cost advantage is tied to software-centric servicing and relatively low electricity prices.

The company faces competition from both domestic and international EV players, including Mahindra & Mahindra, Tata Motors, SAIC Motor’s India unit, and Vietnamese manufacturer VinFast Auto. Tesla is also expanding its supercharger network, beginning with major hubs such as Mumbai, Delhi, and Gurugram.