Tesla India has officially launched on July 15, 2025, with its first Tesla showroom in Mumbai at Bandra Kurla Complex (BKC). This marks a major milestone for Tesla in India and the country’s shift toward sustainable cars. The debut model, the Tesla Model Y, is generating buzz, with the Tesla Model Y price in India expected to differ from the Tesla Model Y price in USA due to import duties. The Tesla India price and overall Tesla price in India will shape its market reach. As Tesla Mumbai opens, rivals like BYD will watch closely. The big question now is how India will embrace Tesla cars.
A Long Road to India: The Backstory
Tesla’s India journey has been anything but straightforward. Here’s a breakdown of the major milestones:
2016–2021: The Early Interest and Tariff Troubles
- In 2016, Tesla began accepting pre-orders for the Model 3 from Indian customers, signaling strong initial interest.
- However, in 2017, Elon Musk raised concerns about India’s high import duties, which reached up to 100% for luxury vehicles, making Tesla’s business model unviable.
- By 2021, Tesla formally registered its Indian subsidiary, Tesla India Motors and Energy Pvt. Ltd., in Bengaluru, with plans to enter the market via CBU (Completely Built Unit) imports.
2022–2023: Factory Talks & Hiring Moves
- In 2022, Musk again emphasized how India’s tariff structure was discouraging Tesla’s entry. Meanwhile, Tesla began testing and homologating several models.
- In 2023, the company started hiring for key positions in Mumbai, fueling speculation of an impending launch. Discussions also began for a $2 billion manufacturing facility in either Gujarat or Maharashtra, but talks stalled due to India’s insistence on local manufacturing.
2024–2025: Policy Push & A Green Light
A breakthrough came in March 2024 when the Indian government introduced the SPMEPCI EV policy, which:
- Reduced import duties to 15% on EVs priced above $35,000,
- Mandated a ₹4,150 crore (~$500 million) investment,
- Required local production within 3 years, with increasing domestic value addition (25% in 3 years, 50% in 5 years).
This policy opened the doors for Tesla and similar high-end EV manufacturers to enter India while preparing for local assembly in the long term.
By early 2025, Tesla ramped up recruitment in Mumbai and Delhi, hiring for store managers, service experts, and Autopilot operation roles, confirming its launch preparations.
Read More: Tesla eyes India entry for third time. Why EV giant’s last two attempts failed
Tesla’s Launch: Mumbai Showroom & Model Y Debut
On July 15, 2025, Tesla launched its first experience center in Mumbai’s Bandra Kurla Complex, one of the city’s most premium commercial zones. A Delhi-NCR showroom is also in the pipeline.
Tesla has kicked off Indian sales with its global bestseller – the Model Y, a premium mid-size electric SUV.
Model Y Pricing in India:
- Base Price (before duties): ₹27.7 lakh
- Import Duties: Approx. ₹21 lakh
- Final Price Estimate: Over ₹50 lakh
Despite the high price tag, early adopters are expected to drive strong initial demand. Deliveries for the first batch of Model Y units are expected to begin within weeks of launch.
Read More: Planning To Buy A Tesla In India? Check Model Y Prices Here
What’s Next? Tesla’s Future in India
With its official launch complete, here’s what Tesla is likely to focus on next:
Expanding Charging Infrastructure
- Tesla is already working on Supercharger installations in Mumbai and Delhi.
- A broader network of destination chargers at hotels, malls, and highways will be essential for customer confidence.
Local Manufacturing Plans
- Tesla is still in active talks to set up a manufacturing facility in India, likely in Maharashtra or Gujarat.
- Reports suggest an investment between $3 to $5 billion could be on the table.
- The Indian government is also revisiting EV incentives to make local production more attractive for Tesla.
Strategic Partnerships
- The Tata Group has emerged as a key supplier for Tesla globally and is expected to play a role in its India plans as well.
- Tesla may eventually collaborate with local vendors for EV components, batteries, and software integration.
Broader Market Strategy
- For now, Tesla is targeting the premium EV market.
- Future plans may include introducing more affordable models, possibly even India-specific vehicles, once local manufacturing begins.
- Tesla’s India entry could also be followed by services like Starlink, expanding Elon Musk’s tech ecosystem in the region.
Why Tesla’s Entry Matters
Tesla’s arrival in India is more than just another car launch—it’s a symbol of the country’s shift toward clean energy and sustainable transportation. It’s expected to:
- Push local EV makers to up their game,
- Accelerate the charging infrastructure rollout,
- Encourage foreign investment in India’s EV ecosystem,
- Influence policy changes that favor cleaner mobility solutions.
After nearly a decade of anticipation, Tesla has finally hit the Indian roads. From a single showroom and the Model Y, the EV giant plans to scale strategically through infrastructure, local manufacturing, and government collaboration. While the journey is just beginning, Tesla’s presence is set to reshape the Indian automotive and clean energy landscape.
