Tesla has expanded operations into India for the first time, opening a new showroom in Mumbai and unveiling the local price for its Model Y electric SUV.
Tesla (TSLA) has launched in India for the first time in a major expansion of its global operations. The automaker has unveiled a new Mumbai showroom, while making its popular electric Model Y SUV available to Indian buyers.
The landmark move comes more than nine years after CEO Elon Musk first hinted at launching in the country. A brand-new 4,000-square-foot Tesla showroom, called the “Experience Centre” is based in the Bandra Kurla Complex, Mumbai’s financial hub.
According to reports, the company is also set to open a showroom in the Indian capital of New Delhi soon. It follows many years of speculation about exactly when Tesla would enter India, the world’s third-largest automotive market.
Tesla reveals high starting price for Model Y
Tesla has drawn criticism for the Model Y’s pricing structure, offering the rear-wheel drive version from $68,000, or ₹59.89 lakh. The firm also lists its long-range drive (LRD) model at the starting price of $79,000, or ₹67.89 lakh.
This means that Indian consumers face significantly higher prices than those in the US, who can purchase a Model Y from $44,990. Customers in Mumbai, Delhi, and Gurugram can reserve the vehicle online with a non-refundable deposit equivalent to $260.
Deliveries for the standard RWD version will begin later in Q3 2025. The long-range versions are due towards the end of Q4 2025. Despite the high price, Tesla appears to be targeting the premium end of the Indian market.
Several industry experts have suggested that the pricing puts Tesla in direct competition with established luxury brands like BMW, rather than local electric car makers such as Tata Motors. The high cost is partly due to India’s high import duties on electric vehicles. These currently amount to around 70%, along with an additional luxury tax.
Tesla takes small steps into the Indian market
With the high taxes making it difficult to offer competitive pricing in the country, Tesla’s launch appears more focused on brand visibility and market research than sales volume. The firm is making a phased entry into India rather than an aggressive expansion.
So far, Tesla has not yet committed to building cars in India, although it has shown interest in the government’s new EV policy. This business-friendly measure offers tax relief to companies that manufacture locally.
Although Tesla has spent years negotiating with the Indian government about setting up a factory, both sides have failed to strike a deal. For now, the company will grow its footprint through new charging infrastructure, service centres, and logistics hubs. Full-scale manufacturing in India is expected to come at a later date, depending on government incentives and local demand.
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