After years of speculation and delays, American electric vehicle giant Tesla has officially confirmed its entry into the Indian market, with plans to open its first showroom in Mumbai on July 15. The Tesla Experience Centre will be located in the city's Bandra Kurla Complex, with another outlet reportedly in the pipeline for Delhi.
According to sources, Tesla will begin its operations in India by importing vehicles from its manufacturing facility in China. A limited number of Model Y units have already been brought in from the company’s Shanghai plant.
This particular model, priced at roughly ₹28 lakh internationally, will be subject to a hefty import duty exceeding ₹21 lakh, as India imposes a 70% tariff on imported cars under USD 40,000. As a result, the final ex-showroom cost of the Model Y in India is projected to be around ₹50 lakh.
In preparation for its launch, Tesla India recently leased a 24,565-square-foot warehouse space at Lodha Logistics Park in Mumbai for a five-year term. Despite its retail push, Union Heavy Industries Minister H D Kumaraswamy noted last month that Tesla currently has no plans to manufacture cars locally and is instead focused on setting up showrooms, TNIE reported.
Earlier this year, Commerce and Industry Minister Piyush Goyal clarified that India would not revise its policies specifically to accommodate Tesla. He emphasised that the country’s EV-related laws and tariffs aim to attract all global electric vehicle makers, not just one brand.
Tesla CFO Vaibhav Taneja, in April, acknowledged the company’s cautious approach to the Indian market, pointing out that the country’s high taxation makes Tesla vehicles nearly twice as expensive as in the U.S.
Notably, Tesla’s India foray comes without a designated country head. Former India head Prashanth Menon resigned a few months ago, and for now, the company’s China team is managing operations in India.