Tesla to Launch First Indian Showroom in Mumbai on July 15, Focuses on Retail Entry Over Local Manufacturing

Elon Musk’s EV giant officially enters world’s third-largest car market with focus on retail, not manufacturing for now

Tesla is all set to make its long-awaited debut in the Indian automotive market, with the launch of its first showroom in Mumbai on July 15, according to media reports. The Mumbai facility will act as an experience centre, marking a formal beginning to Tesla’s India operations after years of anticipation, regulatory hurdles, and policy discussions.

This entry comes at a time when Tesla is facing sluggish sales in Europe and China, prompting the company to explore newer markets. India, with its growing interest in electric vehicles (EVs) and status as the third-largest car market globally, presents a key opportunity.

Tesla has reportedly brought five Model Y rear-wheel drive SUVs to Mumbai, imported from its Shanghai facility. These units, priced at approximately ₹27.7 lakh ($31,988) each, attracted import duties of more than ₹21 lakh per vehicle due to India’s steep 70% tariff on fully built imported cars under $40,000, alongside additional levies.

The Model Y, Tesla’s most popular EV globally, will be the first model introduced to Indian consumers, aimed at building brand awareness and gauging market interest.

While the opening of the Mumbai showroom marks Tesla’s official entry into India, the company is not yet venturing into local manufacturing. For now, Tesla is focusing on building retail infrastructure, with another showroom planned in Delhi-NCR.

Earlier this year, Tesla signed a lease agreement for the Mumbai showroom and began recruiting for key roles across sales, customer service, and operations. The EV giant has also been scouting additional retail locations across Mumbai and New Delhi.

Tesla’s India journey has been anything but smooth. CEO Elon Musk had previously delayed his visit to India citing “heavy obligations,” but the core issue has long been Tesla’s demand for duty concessions up to 70% for EVs under $40,000, and 100% for higher-end models. However, India refused to alter its tariff structure for a single automaker.

Commerce and Industry Minister Piyush Goyal clarified earlier this year that policy changes favouring one brand would not be entertained.

Despite these disagreements, Tesla eventually opted to move forward without concessions, choosing to test the waters through direct imports and retail sales.

No Local Manufacturing Plans Yet

India’s Heavy Industries Minister Kumara Swamy recently confirmed that Tesla had shown no active interest in setting up production units in India. Although the company joined one early meeting about the government’s EV manufacturing scheme, it skipped subsequent consultations, signalling a lack of commitment toward local production for now.

As Tesla launches its first Indian showroom in Mumbai, the company’s immediate goal appears to be brand establishment and customer experience, rather than mass-market penetration. With high import tariffs and no local production in sight, Tesla’s offerings will remain premium and niche for Indian buyers, at least in the near future.