Tesla's 1st India Showroom Opens July 15 in Mumbai

Tesla, led by Elon Musk, is set to open its first outlet in India on July 15, with a store in Mumbai that will function as an ‘experience centre’, according to Reuters. Over recent months, the electric vehicle (EV) giant has accelerated hiring efforts in India and scouted locations in both Delhi and Mumbai for showrooms.

As per a Bloomberg report from June, Tesla’s first batch of vehicles—Model Y rear-wheel drive SUVs manufactured at its Shanghai plant—has already reached Indian shores. Along with the vehicles, the company has imported Supercharger components, accessories, merchandise, and spare parts from the US, China, and the Netherlands.

Documents reviewed by Bloomberg indicate that five Model Y units have landed in Mumbai. These were declared at ₹2.77 million ($31,988) each and incurred import duties exceeding ₹2.1 million per car, reflecting India’s steep 70% tariff on fully-built imported vehicles priced under $40,000.

Tesla is expected to price the Model Y at over $56,000 in India before taxes and insurance. The final retail price will depend on the company’s margin strategy and market positioning. In contrast, the same model is priced at $44,990 in the U.S., and drops to $37,490 after tax credits.

However, Tesla may face a tough challenge breaking into India’s cost-sensitive auto market. Electric vehicles currently make up just over 5% of new passenger car sales, and premium cars account for less than 2% of total market share, according to data from the government’s vehicle registration portal.