Amid soaring global ambitions and slowing sales in Europe and China, Tesla gears up to enter India with its first showrooms in Mumbai and Delhi, in a few months.
Tesla Inc. is set to begin its formal India journey in July by opening its first showroom in Mumbai, followed by another in New Delhi, according to a report by The Economic Times.
Amidst slowing sales in Europe and China, the move comes as the Elon Musk-led company seeks new growth opportunities in the world’s third-largest car market. Tesla has already shipped its first set of vehicles to India — five Model Y rear-wheel drive SUVs from its Shanghai factory — marking the start of operations. The Model Y is currently the world’s top-selling electric car.
Documents reviewed by Bloomberg show these vehicles were declared at ₹2.77 million (approx. $31,988) each and attracted over ₹2.1 million in import duties, reflecting India’s 70% tariff on fully-built EVs priced under $40,000.
Despite this, the cars are expected to be priced at over $56,000 in India, before taxes and insurance, depending on Tesla’s pricing strategy.
The company has also imported Supercharger equipment, accessories, and spare parts from the US, China, and the Netherlands, as part of its infrastructure setup. Tesla is also leasing warehouse space in Karnataka and expanding its logistics footprint in Gurugram, near Delhi.
Tesla’s India entry follows years of delays due to disagreements over import duties and local manufacturing. A breakthrough came earlier this year after Musk met Prime Minister Narendra Modi in the US.
Executives from Tesla’s global operations are now making weekly visits to India to oversee preparations for the launch. While Tesla has yet to name a new country head after the departure of Prashanth Menon, it is ramping up recruitment across charging infrastructure, retail, and policy teams.
The showrooms are being set up in luxury business districts to appeal to affluent buyers, though convincing value-conscious Indian consumers may prove challenging. EVs make up just over 5% of new car sales in India, and premium vehicles account for less than 2%.
Read more: Tesla Unlikely To Manufacture In India, Says Minister
