Tesla officially made its long-awaited debut in the Indian automotive market on July 15, 2025, with the grand opening of its first showroom in Mumbai’s Bandra Kurla Complex (BKC). This marks a major milestone for the electric vehicle giant as it steps into the world’s third-largest auto market with high ambitions, despite ongoing import duty challenges.
The Tesla Model Y, which is being positioned as a premium electric SUV offering, launched in two variants:
- Rear-Wheel Drive at ₹59.89 lakh (~$70,000)
- Long Range RWD at ₹67.89 lakh (~$79,000)
These models are imported from Tesla’s Gigafactory in Shanghai, and the prices reflect India’s steep 70% import duties on completely built-up units (CBUs). By comparison, the same car in the U.S. starts around $43,000 before tax credits. Initial deliveries in India are expected to start in Q3 2025, with six Model Y units already imported for display and demo drives.
The Mumbai showroom, spread across 4,000 square feet, was inaugurated by Maharashtra Chief Minister Devendra Fadnavis and Tesla’s Southeast Asia Director Isabel Fan. Despite heavy monsoon rains, the event drew major crowds and excitement from both media and auto enthusiasts. Tesla has also imported Supercharger stations and accessories worth nearly $1 million, signaling early infrastructure investment.
Tesla plans to open a second showroom in New Delhi later this month, and is actively hiring local staff, finalizing warehousing, and laying groundwork for expansion. However, the company has not yet confirmed any plans to establish a manufacturing plant in India — a critical factor for long-term cost reduction.
India’s EV market, although still emerging, is growing fast — EVs now account for just over 4% of total car sales, up from 2.6% in May 2024. But Tesla’s high price point puts it outside the reach of most Indian consumers, and analysts say it will initially compete more with luxury EVs like Mercedes-Benz EQB and BMW iX1, rather than local players like Tata Motors or Mahindra Electric.
That said, India’s latest EV policy — which offers reduced import duties for automakers who invest in local production — could make the country more attractive for deeper Tesla integration in the coming years.
This launch also arrives at a critical time for Tesla, as it faces stagnating global sales and mounting competition from companies like BYD in China and other global markets. Entering India offers Tesla a fresh growth frontier, particularly among wealthy, tech-forward urban consumers.
While it’s not expected to be a volume game just yet, Tesla’s brand equity and the buzz around its innovation could help lay the groundwork for deeper roots in India’s evolving EV landscape.
Published in SouthAsianDesk, July 15th, 2025
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