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Mumbai: In a historic move that ends years of speculation and stalled negotiations, Tesla Inc. has officially launched its operations in India by opening its first experience centre in Mumbai, alongside introducing its flagship electric SUV — the Model Y. This marks a significant milestone in India’s electric mobility journey and positions Tesla at the forefront of the premium EV segment in the country.
The 4,000 square feet showroom, located in the upscale Maker Maxity Mall at Bandra-Kurla Complex (BKC), Mumbai, is Tesla’s first physical presence in India and part of a broader strategic retail-first approach.
Model Y Makes Debut in India
Tesla has chosen its best-selling model globally — the Model Y — as the launch vehicle for India. The SUV will be available in two variants:
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Rear-Wheel Drive (RWD) at ₹60 lakh
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Long-Range RWD at ₹68 lakh
The vehicles will initially be imported from Tesla’s Gigafactory in Shanghai, attracting a hefty 70% import duty, which significantly inflates the price compared to global markets. Despite this, Tesla is optimistic that the Model Y will attract premium buyers in India’s top metros.
A Bold Entry Despite Policy Challenges
India, the world’s third-largest automobile market, has long been on Tesla’s radar. However, the entry was delayed due to disagreements with the Indian government over import duties and local manufacturing commitments. While India pushed for local production, Tesla advocated for a more flexible policy that would allow it to test the market via imports before investing in factories.
With no compromise on duties, Tesla has adopted a “retail-first, manufacture-later” strategy. The Mumbai experience centre will be followed by a second showroom in Delhi NCR, expected to launch by the end of July. Initial deliveries of the Model Y are slated to begin by August 2025.
Infrastructure and Real Estate Investments
Tesla has leased the BKC showroom at a record-breaking ₹23.38 crore for five years, making it India’s costliest automotive retail lease to date. In addition to the showroom, Tesla has also:
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Imported Superchargers and accessories worth over $1 million
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Set up service and warehouse facilities in Mumbai
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Started hiring local staff for roles ranging from autopilot engineers to store managers
The aggressive rollout indicates Tesla’s long-term interest in building a presence in India, even if manufacturing isn’t on the table immediately.
Strategic Rationale and Market Position
India’s EV market is still in its infancy, accounting for just over 5% of total vehicle sales, with premium EVs contributing a minuscule share. However, Tesla’s arrival is expected to disrupt the luxury automobile space, currently dominated by German marques like Mercedes-Benz, BMW, and Audi.
“Tesla isn’t just selling cars — it’s selling an experience, a brand, and a promise of a cleaner future,” said an auto industry analyst. “The real competition is in how quickly India can offer the infrastructure to support these vehicles.”
Tesla’s early investment in real estate and logistics suggests that the brand is testing demand and building an ecosystem, even if factory plans are deferred.
What Elon Musk & Tesla India Say
While Tesla CEO Elon Musk did not visit India for the launch, he has been vocal about India’s “highest EV tariffs in the world”. Tesla India is currently headed by Vaibhav Taneja, Tesla’s Indian-origin CFO, who has been instrumental in navigating the complex Indian regulatory landscape.
Industry insiders suggest that Tesla could still consider local manufacturing if demand picks up and the policy environment becomes more favorable. The Indian government’s new EV import subsidy scheme (SPMEPCI) may pave the way for reduced duties if companies commit to production and investment milestones.
Consumer and Investor Buzz
Tesla’s India launch has created a buzz on social media, with enthusiasts, influencers, and celebrities already lining up bookings. Early interest is particularly high in metro cities like Mumbai, Delhi, and Bengaluru.
Meanwhile, market watchers are keenly observing the impact on EV startups and incumbent OEMs. Analysts expect ripple effects on local EV sales, investor confidence, and even stock prices of Tesla suppliers listed in India.
Final Take
Tesla’s launch in India is not just the entry of a car company but a symbolic shift in the country’s electric mobility narrative. Despite premium pricing, the aspirational brand appeal, world-class technology, and Elon Musk’s global clout may make Tesla a game-changer in India’s evolving auto sector.
Whether or not Tesla sets up a factory in India, the message is clear: the electric future has arrived.
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