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 entered India's market for the first time on Monday, making its Model Y SUV available and opening its first showroom in the nation.

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.