Winning Bizness Desk
Mumbai. Elon Musk’s electric vehicle company, Tesla, is set to open its first showrooms in India in July 2025. The initial outlets will be located in Mumbai and New Delhi, marking Tesla’s official entry into the world’s third‑largest automobile market. These stores will exclusively sell the Model Y SUV, which will be imported fully built from Tesla’s Gigafactory in Shanghai, China.
Model Y Import & Pricing Details
Tesla has already begun importing units of the rear‑wheel‑drive Model Y to India, with five cars having arrived in Mumbai. Official import documents value the cars at around ₹27.7 lakh (~US $31,988), but steep import duties—approximately ₹21 lakh—push the retail price north of US $56,000 (around ₹48 lakh). Pricing this high in a price‑sensitive market could pose a challenge in winning over Indian buyers.
Strategic Move Amid Slowdown Elsewhere
Tesla’s move into India comes as global sales soften in Europe and China. India presents a fresh opportunity, despite EVs comprising only about 5% of new car sales and luxury EVs less than 2% in the country. It;s success will depend on how effectively Tesla adapts to India's market demands and overcomes the high‑price hurdle.
Building Infrastructure Locally
Tesla is also preparing local infrastructure. The company has imported Supercharger components, accessories, spare parts, and Tesla-branded merchandise from the US, China, and the Netherlands
EV Policies and Local Production Incentives
The Indian government’s latest EV policy allows foreign automakers to benefit from a reduced import duty of 15%, provided they invest at least US $500 million (₹4,327 crore) and begin local manufacturing within three years. Tesla is reportedly preparing to leverage this policy, potentially lowering costs and enabling better market positioning
Story in a Nutshell
- Tesla will launch showrooms in Mumbai and New Delhi in mid‑July 2025.
- The company will debut with the rear‑wheel‑drive Model Y imported from Shanghai.
- Five Model Y SUVs have landed in Mumbai, priced at ₹27.7 lakh before duties.
- Import duties of around ₹21 lakh push the final price to over US $56,000 (~₹48 lakh).
- Premium EVs currently account for less than 2% of India's new car sales.
- Tesla is setting up logistics infrastructure—warehouses, chargers, spares—in Karnataka and Gurugram.
- India’s EV policy offers 15% import duty benefits linked to local investment and manufacturing, but Tesla hasn't yet announced local production plans.
