Tesla’s India Launch: Premium Prices, Import Duties, And A Cautious Entry

Tesla is finally entering the Indian market with a showroom launch in Mumbai on July 15, ending years of speculation about when the electric vehicle maker would establish a presence in the world's third-largest auto market

July 12, 2025

Tesla is finally entering the Indian market with a showroom launch in Mumbai on July 15, ending years of speculation about when the electric vehicle maker would establish a presence in the world’s third-largest auto market.

The company’s first experience centre, a 4,000 square-foot space at Jio World Drive in Bandra Kurla Complex, will showcase Tesla’s vehicles and technology, though test drives and deliveries won’t be available initially. The opening marks a cautious entry for Tesla, which has imported nearly $1 million worth of vehicles and accessories ahead of the launch, primarily from China and the United States.

Among the imports are six Model Y SUVs – five standard range versions valued at $32,500 each and one long-range variant at $46,000. These vehicles will face India’s steep import duties of 70-100%, significantly inflating their final retail prices in a market where Tesla has no immediate plans for local manufacturing.

The company’s hesitation to build cars here is notable. Last year, Elon Musk was supposed to visit India and announce a $2-3 billion investment. He cancelled the trip. Now Tesla’s here, but only as an importer—an expensive proposition in a country with 70-100% duties on foreign EVs.

Tesla’s India launch comes at an odd time. The company’s shares are down 23% over six months, demand is slowing globally, and they’re sitting on excess production capacity. Yet here they are in India, importing cars at massive duties instead of manufacturing locally to keep prices reasonable.

Operations are currently being overseen by Tesla’s China team following the resignation of India head Prashanth Menon last month. No successor has been announced. The company has established four sites across India: the Mumbai showroom, a service centre in Kurla West, an engineering hub in Pune, and its registered office in Bengaluru.

Tesla’s been hiring locally for sales, service, supply chain, and autonomous driving roles. But without local manufacturing, they’ll likely stay a luxury brand for the wealthy rather than a real player in India’s growing EV market.

The Mumbai showroom is Tesla dipping its toe in Indian waters – enough to see what happens, but not enough to really commit. After years of the government trying to woo them with policy changes and incentives, this feels underwhelming.

Whether Tesla eventually builds cars here or keeps treating India as a side market depends on two things: how many people are willing to pay luxury prices for their EVs, and whether Tesla’s global troubles push them to reconsider their strategy in growing markets like India.

Recent Stories

  1. Ray-Ban Meta Smart Glasses Complete Review: Stylish Tech With AI Power
  2. Discover SwaSwara In Gokarna: A Sustainable Retreat For Luxury Wellness Seekers
  3. Chef Ricardo Chaneton Brings Hong-Kong Based Latin American fine-dining MONO To The Oberoi
  4. The Mercedes-Benz GLC 300 4MATIC Review: Luxury, Performance, And Zero Drama
  5. 7 Home-Grown Indian Luxury Brands That Have Gone Global
  6. How the India-UK FTA Deal Could Make Luxury Cars Cheaper in India
  7. India Couture Week 2025: JJ Valaya Celebrates 33 Years With ‘East’ Starring Rasha Thadani And Ibrahim Ali Khan
  8. Inside The Rise Of India’s Private Member Clubs: Where Luxury Meets Lifestyle
  9. Hotel Indigo In Oman is Designed Like A Mountain Sanctuary
  10. Tata Harrier EV Review: Tata Motors Get Serious With Their Latest Premium Electric SUV Offering
  11. India Couture Week 2025: Amit Aggarwal On ‘Arcanum’—The Design Philosophy And Inspiration Behind His Latest Collection
  12. India Couture Week 2025: Sara Ali Khan And Khushi Kapoor Serve Showstopper Glam For Aisha Rao And Rimzim Dadu
  13. Parisian Getaway: Seeking Opulence In The French Capital
  14. 7 Luxe Spa Getaways In Delhi For A Long Weekend
  15. Zoe Saldaña Joins Cartier As Global Brand Ambassador