Tesla debuts in India on July 15, 2025, with its first showroom in Mumbai’s Bandra Kurla Complex. The company aims to tap the luxury EV market with imported Model Y SUVs priced from ₹60 lakh+, setting the stage for future expansion.
Mumbai, July 15:
Tesla, led by CEO Elon Musk, officially entered the Indian market today with the opening of its first experience centre in Mumbai’s Bandra Kurla Complex (BKC) at Maker Maxity Mall. The move marks a key step in the company’s expansion strategy and aligns with India’s aggressive push toward sustainable transportation.
🚗 Price Tag & Model Line-up
Tesla is offering its Model Y SUV in two variants:
- Rear-wheel drive: ₹60 lakh (~$69,770)
- Long-range rear-wheel drive: ₹68 lakh (~$79,000)
Imported from Shanghai, the seen five Model Y units faced India’s steep 70% import duty, which could raise the on-road price above $56,000 before additional taxes and insurance. By comparison, the Model Y sells for about $44,990 in the U.S., $37,490 in China, and €45,970 in Germany
Strategic Move & Market Positioning
Tesla’s luxury-first strategy aims to build brand presence in India’s nascent EV market, where EVs account for roughly 4–5% of new car sales and luxury vehicles make up under 2%. Tesla will initially compete against German luxury EVs like BMW and Mercedes, rather than local mass-market players such as Tata Motors or MG.
With no current plan for local manufacturing, Tesla is testing the waters with imported vehicles—despite past demands by Indian policymakers for domestic production in exchange for reduced import duties. The company has already imported around $1 million of cars and Superchargers and hired local staff for sales, service, and autopilot operations.
What’s Next?
- Deliveries are expected to begin in late August, with orders opening from July 15 .
- A second showroom in Delhi-NCR is slated to launch by the end of July .
- Tesla is eyeing longer-term goals like clearer understanding of market demand and the possibility of future local manufacturing, particularly if trade policies evolve.
Challenge & Opportunity
Entering a price-sensitive market, Tesla faces significant hurdles: high duties, sparse charging infrastructure, and strong competition from both local EV startups and luxury incumbents . However, its luxury-first approach mirrors its global strategy—sparking brand visibility first, then scaling as infrastructure and demand mature .