Elon Musk’s Tesla is set to make its physical debut in India with the launch of its first showroom in Mumbai’s Bandra Kurla Complex on July 15, according to a report by Reuters.
The launch marks the electric vehicle (EV) giant’s formal entry into the Indian market after years of anticipation and negotiations.
The Mumbai facility, described as an “experience centre,” will be Tesla’s first official store in the country. In March this year, the company signed a lease deal for the showroom, Reuters reported, signalling its plans to begin local sales operations. Alongside this, Tesla has ramped up hiring and initiated scouting for showroom locations in both Mumbai and New Delhi.
According to Bloomberg, Tesla has already shipped five Model Y units from its Shanghai factory to Mumbai. The vehicles were declared at ₹2.77 million (around $31,988) each, with additional import duties exceeding ₹2.1 million per unit due to India’s 70% tariff on fully built imported cars.
Tesla’s long-awaited entry comes after extended lobbying by the company for reduced import duties—an effort that had previously stalled its launch. However, despite this milestone, the EV maker is reportedly not planning to manufacture in India anytime soon.
{{/usCountry}}Tesla’s long-awaited entry comes after extended lobbying by the company for reduced import duties—an effort that had previously stalled its launch. However, despite this milestone, the EV maker is reportedly not planning to manufacture in India anytime soon.
{{/usCountry}}“Tesla, we are not actually expected from them, they are only to start showrooms. They are not interested in manufacturing in India,” Union Minister for Heavy Industries HD Kumaraswamy told ANI last month.
Tesla’s India plans are currently focused on setting up retail infrastructure rather than local production, underscoring a cautious start in one of the world’s largest emerging EV markets.
No special treatment for Tesla, says government
Tesla’s India entry comes after prolonged negotiations over tariff concessions. CEO Elon Musk had said in April last year that his visit to India was delayed due to Tesla’s "heavy obligations."
The company had sought steep duty exemptions—up to 70% for cars under $40,000 and 100% for pricier models. However, earlier this year, Commerce and Industry Minister Piyush Goyal made it clear that India would not tweak its policies to favour a single automaker.
“The government aims to attract all global EV manufacturers, not just Tesla,” Goyal said, adding that policy frameworks will be designed to foster a robust electric vehicle ecosystem that reduces carbon emissions and cuts oil imports, reported news agency PTI.
Tesla’s push into India comes amid declining sales in key markets such as Europe and China.