Tesla Inc. is preparing to officially enter the Indian market with the launch of its first showrooms in July, according to people familiar with the company’s plans. The move marks the electric vehicle giant’s long-awaited debut in the world’s third-largest automobile market, as it looks to offset slowing sales in Europe and China, reports Bloomberg.
Sources revealed that Tesla has already shipped its first batch of vehicles, Model Y rear-wheel drive SUVs, from its Shanghai factory to India. The Model Y, currently the world’s top-selling electric car, will be the company’s first offering to Indian customers.
The first Tesla showroom is expected to open in Mumbai by mid-July, followed by a second in New Delhi. Documents reviewed by Bloomberg News also show that Tesla has imported Supercharger equipment, car accessories, merchandise, and spare parts from the US, China, and the Netherlands in preparation for the launch.
The company’s India entry comes after years of back-and-forth, largely due to disagreements over import duties and local manufacturing commitments. A breakthrough came after Elon Musk met with Prime Minister Narendra Modi in the US earlier this year.
Tesla has already delivered five Model Y vehicles to Mumbai, according to customs documents. These vehicles were valued at 2.77 million rupees (around $32,000) each and incurred over 2.1 million rupees in import duties — consistent with India’s 70% tariff on fully assembled imported cars priced below $40,000.
Although the official price is yet to be announced, industry insiders suggest the Model Y may retail for over $56,000 before taxes and insurance in India, significantly higher than its base price in the US, where it sells for $44,990 (or $37,490 after tax credits). This price difference may prove a major challenge in a market where premium vehicles make up less than 2% of new passenger vehicle sales and cost-conscious buying is common.
Tesla is also strengthening its local operations. While a new country head has yet to be appointed following the departure of Prashanth Menon, the company is actively hiring for its charging, retail, and policy teams. It has leased warehouse space in Karnataka and is expanding storage facilities in Gurugram, near Delhi.
Executives from Tesla’s global offices have been making regular visits to India to oversee preparations. The Mumbai and New Delhi showrooms are being set up in upscale business districts, as the company aims to appeal to affluent buyers.
