Tesla to Open First Showroom in India on July 15: Mumbai to Host EV Giant’s Debut

Tesla to Open First Showroom in India on July 15: Mumbai to Host EV Giant’s Debut

Tesla to Open First Showroom in India on July 15: Mumbai to Host EV Giant’s Debut

Mumbai, India – July 11, 2025 – In a significant step towards its long-anticipated entry into India, Elon Musk-led Tesla is set to inaugurate its first showroom in Mumbai on July 15, according to a Reuters report. The launch marks the official debut of the American electric vehicle (EV) giant in the world’s third-largest automotive market.

The Mumbai showroom, strategically located to target affluent urban customers, is expected to display and promote Tesla’s globally successful Model Y electric SUV, which has already been imported in limited numbers from China.

Tesla’s Entry Amid Global Challenges

Tesla’s move into India comes at a time when the company is grappling with slowing sales in Europe and China, two of its key markets. The expansion into India could provide a much-needed boost, with the country showing increased demand for electric vehicles due to government incentives and rising environmental consciousness.

According to a Bloomberg report, Tesla has shipped five Model Y rear-wheel drive SUVs from its Shanghai Gigafactory to Mumbai. These vehicles have been imported at a declared value of ₹2.77 million (approximately $31,988), but the final cost to customers will soar due to India’s steep import duties exceeding 70%, adding over ₹2.1 million in tariffs.

Tesla India Plans: Showrooms, Not Manufacturing

Despite growing excitement around Tesla’s entry, India’s Heavy Industries Minister Kumara Swamy confirmed last month that the company has shown no current interest in setting up manufacturing units in the country. Tesla’s operations remain focused on establishing showrooms and sales infrastructure, not local production facilities.

The company had previously participated in an initial stakeholder consultation regarding India’s electric vehicle production initiatives but skipped the two follow-up meetings, suggesting a lack of engagement with India’s ‘Make in India’ push.

Next Stop: Delhi-NCR Showroom in the Pipeline

Following the Mumbai launch, Tesla is expected to open another showroom in Delhi-NCR, a region with one of the highest EV adoption rates in India. The company has also intensified its hiring efforts in recent months, signaling plans to rapidly build its Indian team to support sales, service, and operations.

Industry insiders speculate that Tesla is taking a cautious, phased approach—first testing waters with direct imports and gauging market response before committing to deeper investments.

Model Y: Flagship Entry into the Indian Market

The Model Y, currently the world’s best-selling electric vehicle, is Tesla’s choice for its India debut. With its combination of premium features, performance, and brand cachet, the Model Y is well-positioned to attract India’s luxury and eco-conscious buyers. However, with import tariffs inflating the price significantly, Tesla may face challenges in appealing to a broader segment unless duty concessions or local production are introduced.

EV Ecosystem in India: Opportunity Meets Policy Roadblocks

India’s EV market is rapidly expanding, with the government offering incentives for both buyers and manufacturers under the FAME (Faster Adoption and Manufacturing of Hybrid and Electric Vehicles) scheme. However, the high import duties on fully built EVs like those from Tesla continue to be a sticking point for foreign manufacturers.

Tesla has repeatedly sought a duty reduction, but the Indian government remains firm on its stand that such benefits would only be available to companies investing in local manufacturing.

Conclusion

Tesla’s entry into the Indian automotive market is a landmark moment that could reshape the EV landscape. While limited to showroom operations for now, the buzz surrounding the Model Y launch could pave the way for broader Tesla engagement in India’s green mobility future. However, without manufacturing commitments, the high cost of imports may limit Tesla’s initial reach to elite urban consumers.