Tesla to open India showrooms in July, starting with China-made Model Y
Tesla is preparing to officially enter the Indian market with the opening of its first showrooms in Mumbai and New Delhi by mid-July. This long-anticipated move marks the U.S.-based electric vehicle manufacturer’s formal debut in the world’s third-largest auto market, with the Model Y, imported from Tesla’s Shanghai factory, leading its initial offering.
The rear-wheel-drive Model Y will be the first Tesla model available in India. These units, already landed in Mumbai, are part of a broader strategy that includes the import of Supercharger components, vehicle accessories and spare parts from Tesla’s operations in the U.S., China and the Netherlands.
Tesla’s India entry has been years in the making, stalled at times by tariff disagreements and challenges around local manufacturing. The recent shift toward establishing a presence comes after Elon Musk met Indian Prime Minister Narendra Modi in the U.S. earlier this year, laying the groundwork for Tesla’s operational rollout.
While the Model Y is one of the world’s best-selling EVs, it arrives in India with a significant price premium. The vehicles were declared at ₹2.77 million (~$31,988) but due to India’s 70% import tax on completely built cars priced under $40,000, each attracted over ₹2.1 million in duties. The Model Y is expected to retail in India at over $56,000 (before taxes and insurance) — far above its price in the U.S., where post-tax credit prices fall to around $37,490.
This steep pricing may prove to be a key hurdle for Tesla in a market where EV penetration is just over 5% and premium vehicle sales account for less than 2% of the passenger vehicle segment. Tesla will need to appeal to a niche but growing segment of affluent, environmentally conscious buyers.
As part of its market buildup, Tesla is expanding its hiring across retail, charging infrastructure and policy divisions. Although the company has not yet named a new India head after the departure of Prashanth Menon, it is actively leasing warehouse space in Karnataka and Gurugram. Meanwhile, global Tesla executives are reportedly making frequent visits to oversee preparations.
The Mumbai and New Delhi showrooms are located in high-end commercial zones, reflecting Tesla’s strategy to position itself as a premium offering from the outset. While only the Model Y is confirmed for now, the company is expected to broaden its model lineup in the coming phases.
