Tesla Opens First Showroom in India, Kicking Off EV Expansion
New Delhi, Tuesday, 15 July 2025.
Tesla’s first showroom in India opened on 14 July 2025 in Mumbai, marking a strategic move into the world’s third-largest car market amid high tariffs and competitive luxury segment.
Strategic Expansion in a New Market
Tesla Inc. (NASDAQ: TSLA) has marked its official entry into India with the launch of its first showroom in the financial district of Bandra Kurla Complex, Mumbai, on 14 July 2025. This opening signifies a substantial move into India’s burgeoning electric vehicle (EV) market, which remains relatively untapped with only 4% market penetration [1][2][3]. Despite facing challenges such as high import tariffs, Tesla aims to capitalize on India’s growing luxury segment and is competing primarily with established German luxury brands like BMW and Mercedes-Benz [2][3].
Pricing and Market Dynamics
The Model Y, Tesla’s spotlight vehicle for the Indian market, is priced at approximately 6 million rupees ($70,000) before taxes and insurance, diverging significantly from its price in other markets due to India’s high import duties which can be up to 100% [2][3][4]. In contrast, the same model retails for $44,990 in the United States and 263,500 yuan ($36,700) in China, highlighting the financial challenge posed by the Indian tariffs [3][4]. Despite these challenges, CEO Elon Musk has expressed optimism, pointing to ongoing discussions with the Indian government about reducing these tariffs to make Tesla vehicles more accessible [2][4].
Navigating Policy and Infrastructure
The entry into India comes at a time when the country’s government is pushing for a 30% electric vehicle sales target by 2030. However, as of 2024, only a little over 2% of India’s automotive sales were electric vehicles, indicating significant room for growth [1][3][4]. Gaurav Vangaal, associate director at S&P Global Mobility, suggests that Tesla’s presence can drive innovation and accelerate India’s EV ecosystem if there is deeper local investment [1][2]. Furthermore, Tesla plans to roll out 16 Supercharger stations in both Mumbai and Delhi, essential infrastructure that could bolster consumer confidence in adopting electric vehicles [3][4].
Future Prospects and Local Expansion
Tesla’s decision to open a second showroom in New Delhi later in July 2025 underscores its commitment to establishing a foothold in India. While the company has not committed to setting up local manufacturing, something that the Indian government is keen to incentivize, the strategic opening of showrooms and potential reduction in import tariffs could lead to a reevaluation of local production opportunities [2][3][4]. The Maharashtra Chief Minister has expressed hopes for future Tesla research and development and manufacturing operations within the state, hinting at a longer-term vision for deeper integration into India’s automotive landscape [2][4].