Tesla to Launch First India Showroom in Mumbai, Sell China-Made Model Y EVs
| 2025-06-21
Tesla's first retail location is scheduled to open in Mumbai by mid July.
Tesla will open its first showroom in Mumbai next month, introducing China-manufactured Model Y electric vehicles to the Indian market.
Electric vehicle maker Tesla is set to enter the Indian market with the opening of its first showroom in Mumbai next month, offering China-manufactured Model Y SUVs amid efforts to expand globally as demand slows in other regions.
The move comes after years of stalled negotiations with Indian authorities over import duties and manufacturing requirements. According to a report by Bloomberg News, Tesla has already delivered several units of its Model Y SUV to India and is preparing for a phased retail rollout, starting with locations in Mumbai and New Delhi.
Showrooms in Mumbai and Delhi Mark Market Debut
Tesla’s Mumbai showroom is expected to open by mid-July, followed by another in the national capital. The company has reportedly imported charging equipment, car accessories, branded merchandise and spare parts from the United States, China and the Netherlands in preparation for its launch.
The vehicles on offer will be imported from Tesla’s Shanghai facility. Sources cited by Bloomberg News confirmed that five Model Y rear-wheel drive units have already arrived at a port near Mumbai, signalling the start of the company’s operations in India.
Model Y to Sell at Premium Price
Documents reviewed by Bloomberg indicate that each Model Y was declared at ₹2.77 million (approximately US$31,988), attracting import duties exceeding ₹2.1 million, in accordance with India’s 70% tariff on completely built electric vehicles valued under US$40,000. This figure does not include additional surcharges.
Despite the declared value, the final sale price of the Model Y in India is expected to exceed US$56,000 before taxes and insurance. The vehicle retails for around US$44,990 in the United States, with post-incentive pricing as low as US$37,490.
Tesla is expected to finalise Indian pricing based on its broader strategy for positioning and profit margins in the country. The high price point could present challenges in a market where electric vehicles make up just over 5% of new car sales, and the premium segment accounts for an even smaller share.
Entry Follows Musk-Modi Meeting
The breakthrough follows a meeting between Tesla Chief Executive Elon Musk and Indian Prime Minister Narendra Modi in the United States earlier this year. The discussion reportedly helped pave the way for Tesla’s formal entry, resolving long-standing differences over local production demands and taxation.
India, the world’s third-largest automobile market, has been a target for Tesla for several years. However, friction over the country's import tariffs and the absence of a manufacturing commitment from Tesla delayed progress. Until recently, Tesla had also not appointed a country head for India, although the company is currently expanding its team across sales, charging infrastructure and public policy.
No Plans for Local Manufacturing
Tesla has not indicated any intention to establish a production facility in India. Earlier this month, India’s Minister of Heavy Industries, Kumara Swamy, confirmed that Tesla has shown no interest in local manufacturing under the government's electric vehicle promotion scheme.
Despite limited involvement in India’s manufacturing incentive programmes, Tesla did participate in an initial stakeholder meeting for a central policy aimed at attracting electric car producers. However, company representatives did not attend subsequent consultations.
In parallel, Tesla has been expanding its warehousing operations, including leasing facilities in Karnataka and Gurugram, indicating preparations for a wider rollout of products and components.
Market Entry Amid Global Slowdown
Tesla’s entry into India coincides with a period of weakening demand for electric vehicles in key global markets, including Europe and China. By launching in India, Tesla aims to tap into a fast-growing market with rising interest in green mobility solutions, albeit one that remains price-sensitive and policy-dependent.
The Model Y, the world’s best-selling electric vehicle in recent years, is expected to serve as Tesla’s flagship offering in India. However, its premium pricing and import-based strategy may limit initial uptake.
The absence of tax breaks for imported EVs, along with Tesla’s decision not to manufacture locally, could place the company at a competitive disadvantage relative to Indian rivals such as Tata Motors and Mahindra Electric, which benefit from government incentives.
Context: India’s EV Landscape and Policy Challenges
India has been pushing to increase the adoption of electric vehicles as part of its broader environmental and energy security goals. The country offers subsidies for domestically manufactured EVs under schemes such as the Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME), but fully imported vehicles do not qualify for these benefits.
The government has also urged foreign automakers to consider local production as a prerequisite for favourable policy treatment. While Tesla’s entry represents a milestone for India’s automotive sector, the company’s decision to bypass manufacturing and rely on imports sets a cautious tone.
With showrooms set to open and vehicles already on Indian soil, Tesla’s performance in this new market could shape not only its own regional strategy, but also broader trends in foreign electric vehicle investment in India.
US Invite Declined by PM Modi to Prioritise Visit to Odisha’s Jagannath Temple
Indian Prime Minister Narendra Modi turned down a US invitation from President Trump, citing his commitment to visit Lord Jagannath’s abode in Odisha.
|2025-06-21
Telegram Founder Pavel Durov to Leave $13 Billion Fortune to Over 100 Children
Telegram founder Pavel Durov plans to bequeath his $13.9 billion fortune to more than 100 children he has fathered, including via sperm donation.
|2025-06-20
Amazon India to Invest Over Rs 2,000 Crore in 2025 to Expand Operations
Amazon India will invest more than Rs 2,000 crore in 2025 to expand and upgrade its logistics and fulfilment network across the country.
|2025-06-20
India Evacuates Citizens from Iran as Israel-Iran Conflict Escalates
India has launched Operation Sindhu to evacuate its nationals from Iran amid the intensifying conflict with Israel, beginning with 110 students.
|2025-06-19
India-Canada Relations Strengthened as PM Modi and PM Carney Meet at G7
India and Canada agree to appoint new high commissioners during the G7 Summit, signalling a reset in diplomatic ties after a year of strained relations.
|2025-06-18