Key Highlights :
Tesla’s launch of its first India showroom in Mumbai on July 15, 2025.
Model Y EVs to be imported and retailed for more than ₹47 lakh because of the heavy import duty.
Tesla is keeping its focus on imports and brand experience with no local manufacturing on the cards yet.
Key Background :
Tesla’s entry into the Indian automobile space has been one much-awaited phenomenon. The electric car behemoth, endorsed by Elon Musk, has now made its presence felt strong by having a flagship outlet in Bandra Kurla Complex (BKC), Mumbai. Famous for housing high-end multinational companies and luxury retail brands, BKC is the perfect address for Tesla to capture India’s high-end consumer base.
This is a strategic move following a series of exchanges between Tesla and the Indian government in the last two years. The 5-year lease for the 4,000 sq. ft area in BKC was completed this year. The rent is ₹3.7 crore annually with incremental escalation by 5% per annum. The center will be structured as an “experience store” with direct access for Indian customers to Tesla’s products, services, and culture.
Apart from the Mumbai showroom, five Model Y electric SUV units have already been imported by Tesla to India. Imported from Tesla’s Shanghai plant, the cars indicate the company’s plan to start with imports first. But here it gets complicated with respect to pricing. Each unit, which was worth ₹27.7 lakh at the point of declaration, also attracts import duties of almost 70%, thus reaching a price of over ₹47 lakh. Tesla cars thus become much more expensive than in its home market.
Apart from these cost barriers, Tesla is going ahead with expansion plans. Tesla is also making investments in back-end infrastructure such as Karnataka warehousing and Bengaluru and Gurugram regional offices. All of these are a part of a phased plan that considers brand building, logistics preparedness, and customer service networks before looking at more capital-draining steps such as local manufacturing.
Significantly, no immediate plans are being made to manufacture automobiles in India. Government officials, such as Union Minister H.D. Kumaraswamy, have stated that Tesla’s immediate ambition is only to establish showrooms and sell imported vehicles. Such a strategy implies Tesla’s careful foray into what is still a price-sensitive but possibly high-growth market.
India’s adoption of EVs is in its infancy stages, particularly on the luxury side. Tesla’s foray may spur high-speed consciousness and a new standard for EV performance and creativity. Much will rely on consumer demand for premium electric vehicles and potential policy change down the line to favoring local manufacturing or lower import tariffs.