Tesla has launched its Model Y in India for about $70,000, a significant markup relative to its other major markets, reflecting the country’s high tariffs on electric vehicle imports, which CEO Elon Musk has long criticised.

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.

In a nation where the average salary is around $4,200 a year, the all-electric carmaker is launching a $70,000 vehicle. The question is why.