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.

After a long, long wait, Tesla has finally arrived in India, opening its first showroom in Mumbai. Its Model Y, priced between Rs 61-69 lakh on-road, is up for sale. But can Indian customers afford Elon Musk’s EV?

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

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 Indian version of Tesla’ website lists two models of the only EV it will begin delivering this fall, the Model Y. The entry-level version is a standard range, single-motor, rear-wheel drive Y that offers zero to 62 mph (100 kmh) in 5.9 seconds and a 311-mile (500 km) WLTP range.

Tesla has arrived in India, with its first showroom in Mumbai and plans underway for a second outlet in Delhi.