NEW DELHI — Tesla Inc. officially entered the Indian market on Tuesday with the opening of its first showroom in Mumbai, signaling the electric vehicle (EV) giant’s long-awaited debut in the world’s third-largest automotive market.
The new showroom, located in the upscale Bandra-Kurla Complex, will serve as Tesla’s flagship retail and experience center as it introduces its electric vehicles to Indian consumers.
Tesla’s arrival in India comes amid a challenging period for the company globally, with sales dropping sharply between April and June, partly due to ongoing boycotts tied to CEO Elon Musk’s political views. Despite the slump in its core markets—the U.S. and China—Tesla is looking to expand its footprint in emerging economies.
India presents both an opportunity and a challenge. While the country has a growing appetite for electric vehicles, its EV market is still in its infancy—accounting for just over 2% of all car sales last year. The Indian government, however, has ambitious plans to boost EV adoption to 30% by 2030.
At launch, Tesla will import and sell its popular Model Y in India, with a base price of 6.78 million rupees (approximately $79,089) for the long-range, rear-wheel-drive version. Deliveries are expected to begin in the third quarter of this year. In comparison, the same model starts at around $44,990 in the U.S. before tax credits.
Due to its pricing, Tesla is expected to compete with luxury brands such as BMW and Mercedes-Benz, rather than mainstream Indian automakers like Tata Motors and Mahindra & Mahindra. The luxury car segment in India remains niche, accounting for just about 1% of the total market.
Still, industry experts say Tesla’s presence could have a broader impact. “With deeper local investments, Tesla can accelerate India’s EV ecosystem, drive innovation, and support the government’s goal of higher EV penetration,” said Gaurav Vangaal, associate director at S&P Global Mobility.
India has courted Tesla for years, both for its cutting-edge technology and its global brand power. In 2016, Musk invited Indian customers to pre-order the Tesla Model 3. While many did, the vehicles were never delivered, and bookings were eventually refunded. By 2019, Musk had raised concerns over India’s steep import duties, which could double vehicle prices.
In response to Tesla’s lobbying, the Indian government unveiled a new policy earlier this year, slashing import duties from as high as 100% down to 15%—but only for EVs priced under $35,000 and on the condition that manufacturers commit to building a factory in India within three years.
Following a high-profile meeting between Musk and Prime Minister Narendra Modi during Modi’s U.S. visit in February, speculation grew that Tesla would announce major investments in India. Musk had planned to visit India in April to detail Tesla’s manufacturing plans, but the trip was canceled at the last minute due to what he called “very heavy Tesla obligations.” Instead, he traveled to China.
Since then, Tesla has indicated it has no immediate plans to build a factory in India, raising questions about the extent of its commitment to the market.
Despite the limited initial accessibility of its cars, Tesla’s debut is seen as a step toward greater investor confidence and could help catalyze India’s transition toward cleaner transportation.
