 "Police officers direct traffic outside the Tesla showroom ahead of its opening in Mumbai. Reuters")
If you ask people to name electric cars, there’s a pretty good chance the name Tesla will pop up more than any other. However, until now, the Elon Musk-led car company was only a brand Indians had heard of.
But starting today (July 15), the electric carmaker has begun its journey in the Indian automobile market, launching its first ever showroom in Mumbai’s suburban area of Bandra Kurla Complex. At the launch, Maharashtra Chief Minister Devendra Fadnavis said, “I welcome Tesla here in Mumbai. Tesla has opened an experience centre here, and it is a statement that Tesla has arrived and it’s a statement they Tesla has arrived in the right city and right state.”
“It is a matter of great joy for us that Tesla has launched its first experience in India in Mumbai. Tesla is establishing a logistics and servicing system here. Four big charging stations are also being established by them. I am happy that Tesla chose Maharashtra as the state has become a leader in electric mobility. Tesla is launching its Model Y in India. Maharashtra has the most dynamic electric mobility. policy… I believe Maharashtra will be a preferred destination when they decide to do manufacturing in India,” he added.
What can we expect from Tesla’s foray into India? Will the Elon Musk car company be able to gas out the remaining competition?
Tesla’s big showroom in Mumbai
Elon Musk’s Tesla will officially enter the Indian market today (July 15) with the launch of its showroom at the Maker Maxity Mall in Bandra Kurla Complex in Mumbai. Property documents reveal that Tesla has taken a 4,000 square feet space on lease for Rs 23.38 crore over five years. A News18 report states that with a per sq ft rent of Rs 881, it’s officially the most expensive showroom lease in India.
Other than the showroom, Tesla has also rented a warehouse, which will serve as its official service centre, and a co-working office near BKC in Phoenix Market City.
Prior to the big launch today, Tesla even released a teaser online to generate buzz. The electric car company shared an image of high-rise buildings with the words ‘India’ and ‘July 2025’.
Tesla’s Mumbai showroom will feature its Tesla Model Y. This comes after Reuters reported that the Elon Musk-led EV company has already shipped six units of the Model Y SUV from its Shanghai plant to Mumbai.
And what would the Tesla car be priced at in India?
Shortly after the launch, the Tesla website revealed that the Model Y will be sold in two variants — the rear wheel drive priced at Rs 61,07,190 on road. The other variant, the long-range rear wheel drive, is priced at Rs 69,15,190. The pricing is almost $10,000 more than the US pricing.
And the Mumbai showroom is just the beginning of Tesla’s journey in India. The Elon Musk company is also eyeing another showroom in New Delhi by the end of July.
Tesla’s long awaited journey to India
With the launch of Tesla in Mumbai, the electric car maker has finally seen a long dream come to life. It began in 2016 when Tesla started accepting pre-orders for the Model 3 from outside North America. This resulted in many Indians putting up a refundable deposit of $1,000.
A year later, Elon Musk publicly mentioned the tax-based challenges, citing 100 per cent import duties on luxury vehicles as a big hurdle to launching the Tesla brand in India.
However, things progressed once again in March 2024 when India rolled out a new EV policy aimed at attracting global automakers. This policy offered a reduced 15 per cent import duty for EVs priced over $35,000, on the condition that the automaker invests Rs 4,150 crore ($500 million) in local manufacturing within three years. It also allows up to 8,000 EVs per year to be imported at this lower rate.
Then earlier in April, Tesla boss Elon Musk spoke with Indian Prime Minister Narendra Modi to discuss collaboration in areas including technology and innovation.
While Tesla hasn’t officially announced a plant in India, a Times of India report states that there is speculation of one being set up in Gujarat, Maharashtra, or Tamil Nadu.
The timing of Tesla’s foray in India is significant; the EV maker is facing stiff competition from Chinese EV makers, particularly BYD. Moreover, Tesla shares have been dropping, falling close to 15 per cent and erasing around $150 billion in market value.
Challenges for Tesla in Indian market
But even though Tesla is launching in the world’s third-largest auto market, the question that many are asking is — will Tesla be able to ride a high in the country?
First and foremost, India’s electric vehicle market is still in its nascent stages — it has only 7.8 per cent penetration, up from 7.1% the previous year. Within this market, Tata dominates the EV market in India — 60 per cent — followed up by MG (22 per cent) and Mahindra.
These companies price their EVs anywhere between Rs 9-18 lakh. That’s way lesser than the Tesla, priced around Rs 60 lakh, making it a highly luxurious product. In fact, Bloomberg reports that with Tesla’s pricing it will be competing mostly with German luxury carmakers such as BMW and Mercedes-Benz Group AG, not mass-market budget-car players like Tata Motors Ltd, Mahindra, and MG Motor.
Another challenge for Tesla in India would be the fact that the demand for EVs is reducing across the world, especially in Germany and the United States.
There’s also the issue of EV charging infrastructure. While it has grown from 1,800 stations in early 2022 to over 16,000 by mid-2024, it is still limited to urban pockets, with fast chargers still rare and expensive to install.
It’s unknown what comes next for Tesla. But as Jay Kale, a Mumbai-based analyst at Elara Securities told Bloomberg, “It plants the brand. Over time, as charging infrastructure improves and the lineup expands, Tesla could scale.”
With inputs from agencies