New Delhi/Mumbai – Elon Musk’s Tesla Inc. is all set to open its first showroom in India this July in Mumbai, formally entering the world’s third-largest car market after years of anticipation, stalled talks, and tariff roadblocks. A second outlet is expected soon in New Delhi.
The long-awaited launch kicks off with the Model Y rear-wheel drive SUVs, freshly imported from Tesla’s Shanghai gigafactory, signalling the start of the company’s retail operations in India.
India Entry After Musk-Modi Talks
Tesla’s India foray gained traction after Elon Musk’s meeting with Prime Minister Narendra Modi earlier this year in the U.S., where they reportedly cleared hurdles surrounding India’s high import duties and ambiguous EV policies. The result: Tesla is now fast-tracking showrooms, logistics, and local infrastructure.
Showroom Launch, Vehicle Imports Begin
Bloomberg has confirmed that the first shipment of Model Y units has already landed in Mumbai, along with Tesla Superchargers, spare parts, accessories, and merchandise sourced from China, the U.S., and the Netherlands.
The initial Model Y models are declared at an import value of ₹27.7 lakh ($31,988) each, incurring over ₹21 lakh in import duties—aligned with India’s 70% tariff on EVs priced under $40,000.
Once fully priced, the Model Y is expected to retail at over ₹46 lakh ($56,000) in India, significantly higher than its price in the U.S., raising questions about its appeal in India’s highly price-sensitive car market.
Premium Push Despite Pricing Hurdles
Though premium vehicles make up less than 2% of car sales in India, Tesla is betting on aspirational EV buyers in metro cities. The showrooms in Mumbai and Delhi are being developed in upscale business hubs to attract luxury consumers.
Tesla’s strategy includes building warehousing infrastructure in Karnataka and Gurugram, while also expanding its Indian workforce across policy, sales, and charging operations. Meanwhile, senior executives from Tesla’s global teams are flying in weekly to oversee launch preparations.
More Models Coming Soon
With the Model Y rollout, Tesla is laying the groundwork for a broader product lineup and deeper market penetration. The Indian EV sector is slowly gaining ground, with EVs making up just over 5% of new car sales—offering Tesla room to grow.
As anticipation builds, Tesla’s India journey has officially begun, with its first retail footprint ready to electrify the nation’s automotive landscape.
