Tesla (NASDAQ:TSLA) has selected Liberty General Insurance and Acko as its preferred insurance partners for its entry into the Indian market, according to the Press Trust of India.

Tesla ( TSLA) officially launched in India on Tuesday, making a small bet on a country with massive growth potential.

Tesla (NASDAQ:TSLA) has officially entered the Indian market with the launch of its Model Y electric SUV, priced at around ₹6 million ($69,751), according to a price catalog published on its website.

While the average price of a car sold in India is $13,000, Tesla Inc. (NASDAQ: TSLA) will sell its Model Y there for about $69,770, according to Reuters. India is the world’s fourth-largest car market.

With its sales cratering in the West, the electric vehicle giant is making a high-stakes pivot to the world's third-largest auto market.

According to Bernstein analysts, Tesla has not signed up for India’s new EV policy, which offers a lower 15% duty for vehicles over $35,000 in exchange for a commitment to local manufacturing.

Tesla will open its first India showroom in Mumbai next week, having imported $1 million worth of cars and merchandise, marking its entry into the world's third-largest car market despite CEO Elon Musk's complaints about high import tariffs.

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.