Tesla Ignites Indian EV Market with Mumbai Showroom and Model Y Launch

Tesla has officially entered the Indian automotive market, opening its inaugural showroom in Mumbai's upscale Bandra Kurla Complex. This highly anticipated move, teased last week on Tesla India's X account, marks a significant step for the electric vehicle (EV) giant, particularly as it navigates a shifting global sales landscape.

The grand opening on Tuesday was attended by notable figures including Maharashtra Chief Minister Devendra Fadnavis and Transport Minister Pratap Sarnaik, highlighting the importance placed on this development by Indian authorities. While local manufacturing is not currently in Tesla's immediate plans, with Union Minister HD Kumaraswamy confirming the focus remains on sales, the company's arrival is expected to significantly influence India's burgeoning EV ecosystem.

Concurrently with the showroom inauguration, Tesla unveiled its popular Model Y for Indian consumers. The Model Y is being offered in two variants for outright cash purchases: the Rear-Wheel Drive (RWD) at ₹60 lakh and the Long Range RWD at ₹68 lakh. These prices reflect a notable premium compared to other major global markets; for instance, the Model Y RWD starts at approximately $44,990 in the United States, 263,500 yuan in China, and €45,970 in Germany. This difference is largely attributable to India's substantial import duties, which can exceed 70% on fully-built imported vehicles under $40,000, as evidenced by duties of over ₹21 lakh per unit on Model Y shipments.

Tesla's entry into India comes at a crucial time for the company, which is seeking to expand into new territories amidst intensified competition from Chinese EV manufacturers and slowing global sales. In the first three months of 2025, Tesla delivered around 336,681 vehicles globally, a decline from the same period last year. In contrast, Chinese rival BYD recorded sales of more than one million vehicles in the first half of 2025.

Despite the premium pricing and initial focus on imports, Tesla's presence is poised to elevate the premium EV segment in India. The country's electric vehicle market currently represents a modest portion of total car sales, but the Indian government is actively promoting EV adoption, targeting a significant increase in EV share by 2030. India's revised electric vehicle policy, which offers reduced duties and incentives, likely facilitated Tesla's long-awaited market entry, following discussions between Prime Minister Narendra Modi and Elon Musk earlier this year.

Tesla's new 4,000-square-foot showroom in Mumbai's Maker Maxity Mall, with a second expected to open in New Delhi by the end of July, will showcase the China-made Model Y crossovers. While immediate sales volume may not be the primary objective, Tesla appears focused on gauging demand and reinforcing its brand image in what is the world's third-largest automobile market. Deliveries of the Model Y are estimated to commence from the third quarter of this year, positioning Tesla to compete primarily with established luxury brands such as BMW and Mercedes-Benz in the Indian market.