After years of back-and-forth, Tesla is finally entering the Indian market. The company’s first showroom will open in Mumbai by mid-July, followed by another in New Delhi, according to sources familiar with the matter. This marks a major step for Elon Musk’s electric car giant in tapping into the world’s third-largest auto market. Five Model Y SUVs have already landed in Mumbai, shipped from Tesla’s Shanghai factory, alongside charging gear, spares, and branded accessories from China, the US, and the Netherlands.
Model Y Launch at a Premium, High Duties Raise Price
Documents show the Model Y rear-wheel drive variant was declared at ₹27.7 lakh ($31,988) and attracted import duties exceeding ₹21 lakh, consistent with India’s 70% tariff on fully built EV imports. With additional surcharges, the final sticker price could cross $56,000 before taxes and insurance. This pricing is significantly higher than its U.S. counterpart, raising concerns about Tesla’s affordability in a cost-sensitive Indian market where premium EVs form less than 2% of sales.
Hiring, Warehousing and Weekly Global Visits Signal Expansion
Tesla is ramping up its India operations despite not appointing a new country head since Prashanth Menon’s exit. It is expanding warehousing in Karnataka and Gurugram and hiring across retail, charging infrastructure, and policy divisions. Executives from global offices are visiting weekly to oversee developments at luxury showroom locations. The move follows Elon Musk’s meeting with Prime Minister Modi earlier this year and signals Tesla’s serious intent to scale in India.
