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Tesla is set to launch its first showroom in Mumbai, officially entering India’s EV market with China-made Model Y SUVs.
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Updated : Jun 22, 2025, 11:25 PM IST
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Tesla, the well-known electric car company led by Elon Musk, is finally making its official entry into India. The company is all set to open its first showroom in Mumbai next month. A second showroom is also planned for Delhi, according to a report by Bloomberg News. India is the world’s third-largest car market, and Tesla sees it as a major opportunity for growth. This comes at a time when Tesla is seeing slower sales in other big markets like Europe and China. To prepare for the launch, Tesla has already started bringing in electric vehicle (EV) chargers, spare parts, and company merchandise from countries like the United States, China, and the Netherlands.
Tesla’s first batch of Model Y cars, rear-wheel-drive SUVs made at Tesla’s factory in Shanghai, has already arrived at Indian ports. The Model Y is currently the best-selling electric vehicle in the world.
This launch follows a key meeting between Elon Musk and Indian Prime Minister Narendra Modi earlier this year in the United States. Their discussion helped resolve long-standing issues around tariffs and local manufacturing rules, which had earlier delayed Tesla’s plans for India.
As part of its step-by-step entry strategy, Tesla is expected to ship a few thousand vehicles to a port near Mumbai. So far, five Model Y cars have been imported. Documents show each was declared at Rs 27.7 lakh (around USD 31,988), and import duties of over Rs 21 lakh were applied. This matches India’s current 70% tax on imported EVs priced under USD 40,000.
Although pricing is yet to be finalised, sources suggest Tesla might sell the Model Y in India for over USD 56,000, not including taxes and insurance. In comparison, the same car costs around USD 44,990 in the US, or USD 37,490 after government benefits.
With its Mumbai showroom ready to open and more cars on the way, Tesla is officially joining India’s fast-growing electric vehicle market. This marks a major moment for both Tesla and Indian consumers looking for high-end EV options.
