Tesla Opens First Showroom in India, Launching Sales in Mumbai
US electric vehicle maker Tesla has officially entered the Indian market, opening its first "experience centre" showroom in Mumbai's Bandra Kurla Complex. The company will initially sell its Model Y and Model S vehicles. While Tesla has stated it is not currently interested in manufacturing in India, its entry is a significant development for the country's EV market and follows the government's new policy to attract global EV manufacturers. The company has also established a service facility in Mumbai.
Unpacked:
Tesla is avoiding immediate local manufacturing in India due to high import duties, the need to test market demand, and ongoing negotiations with policymakers. By selling imported vehicles first, Tesla retains flexibility and can gauge whether local production would be viable and profitable in the future given India's price-sensitive market and regulatory environment.
Tesla’s vehicles, such as the Model Y, are priced much higher in India—around ₹60 lakh (about $69,770), roughly twice as high as in the U.S. This premium pricing is largely due to India’s high import duties (up to 100%), making Teslas a luxury product targeting affluent and early-adopter customers rather than the mass market.
Tesla faces challenges including high import duties, a price-sensitive market, limited charging infrastructure, and competition from more affordable domestic EV brands like Tata and Mahindra. Additionally, range anxiety and regulatory hurdles may impact broader consumer adoption until infrastructure and local support improve.
Tesla’s entry is expected to accelerate growth in India’s EV ecosystem by raising consumer awareness, encouraging infrastructure development, and attracting investment. The move could also drive innovation and competition among domestic brands, potentially making India a more attractive hub for global EV manufacturers in the long term.