NEW DELHI: With Elon Musk’s Tesla officially entering the Indian market, attention has quickly shifted to a crucial question: who will provide insurance for the EV giant’s vehicles?
According to industry sources, digital-first insurer Acko has emerged as Tesla’s preferred partner for insurance in India. However, heavyweight insurers Bajaj Allianz and ICICI Lombard are also actively pursuing tie-ups with the American automaker, eager to capture a slice of the fast-growing EV insurance market.
The discussions are still at an early stage, with no final agreements in place. Sources familiar with the matter said that insurers are exploring non-exclusive partnerships, allowing multiple companies to offer coverage for Tesla’s vehicles.
The final decision will hinge on Tesla’s insurance team, which currently operates out of its Hong Kong and Singapore offices, insiders revealed.
Before any formal tie-ups can be signed, Tesla must obtain a motor insurance provider license from the Insurance Regulatory and Development Authority of India (IRDAI) — a process that could take several months. Only after this regulatory green light can the company enter into official partnerships with Indian insurers.
Requests for comment from Bajaj Allianz and ICICI Lombard remain unanswered at this time.
Tesla made its long-anticipated India debut on Tuesday by launching the Model Y, priced from ₹59.89 lakh. The EV maker opened its first experience centre in Mumbai, showcasing its commitment to the Indian market.
The Model Y will initially be available in two variants:
• Rear-Wheel Drive: Starting at ₹59.89 lakh
• Long-Range Rear-Wheel Drive: Starting at ₹67.89 lakh
Both variants will be imported as Completely Built Units (CBUs) from Tesla’s manufacturing plant in Shanghai, China.
Deliveries are expected to begin in Q3 and Q4 of 2025, with initial rollouts targeted in Delhi, Mumbai, and Gurugram. Tesla India also confirmed that customers can personalise their vehicle through the Tesla Design Studio, offering customisations for the exterior, interior, and additional features.
As the Indian EV ecosystem accelerates, Tesla’s arrival is set to shake up not just the auto sector but also related industries — with insurance emerging as a key battleground for legacy and new-age players alike.
