Tesla Enters Indian Market With Mumbai Showroom Launch

Flagship Store Opens Amid Trade Policy Shifts and EV Push

Tone & Political Bias: Center-Leaning

Why: Article maintains a neutral tone while presenting facts about Tesla’s business decision, Indian policy changes, and global market positioning without ideological framing.

What Happened

Tesla Inc. has officially launched in India with the opening of its first showroom in Mumbai’s Bandra-Kurla Complex on Tuesday. The move marks the U.S.-based electric vehicle (EV) maker’s long-awaited debut in one of the world’s fastest-growing automotive markets.

Why It Matters

India is the third-largest car market globally, and Tesla's entry comes at a time when its global sales are facing pressure, especially in China and the U.S. Tesla hopes to gain traction in India’s nascent but growing EV market, while India sees the entry as a boost for clean mobility and investor confidence.

Key Details

Location: Tesla’s showroom is located in Mumbai’s upscale Bandra-Kurla Complex and will act as a flagship retail and experience center.
Model Launch: Tesla will initially offer the Model Y, with long-range, rear-wheel drive versions priced at 6.78 million rupees ($79,089). Deliveries are expected in Q3 2025.
Pricing Comparison: The same model costs around $44,990 in the U.S. (excluding tax credits).
Affordability: The pricing positions Tesla against luxury automakers like BMW and Mercedes-Benz, not budget EV makers such as Tata or Mahindra.
EV Market Share in India: EVs made up just over 2% of total car sales last year. The government aims for 30% penetration by 2030.

Delays and Diplomatic Shifts

Tesla's India plans date back to 2016 when Elon Musk invited pre-orders for the Model 3. Although bookings were made, the deliveries never happened due to high import duties and regulatory hurdles.

In 2019, Musk criticized India’s import taxes, which could double the price of Tesla cars. Tesla lobbied for lower duties but was initially asked by Indian authorities to commit to local manufacturing in return.

Policy Turnaround

A breakthrough came after Indian Prime Minister Narendra Modi met Musk during a U.S. state visit in February 2025. A month later, India rolled out a revised import policy, slashing EV tariffs to 15% for cars priced below $35,000, conditional on the manufacturer building a local factory within three years.

While Tesla welcomed the policy shift, the company later clarified it has no immediate plans for manufacturing in India. Musk postponed a planned April visit to India and instead traveled to China.

Market Positioning

Tesla’s current pricing and lineup aim to target India’s luxury EV segment, which represents just 1% of total car sales. Analysts believe that while the initial pricing will limit market penetration, Tesla's entry brings cutting-edge technology and brand power that could help catalyze India’s EV ecosystem.

S&P Global Mobility’s Gaurav Vangaal said Tesla’s presence could “drive innovation and support the government’s goal of higher EV penetration,” especially if local investment deepens over time.

U.S.-India Trade Considerations

Tesla’s India expansion occurs amid broader trade discussions between India and the U.S. The two nations are negotiating tariff reductions and greater market access. U.S. President Donald Trump has publicly warned against companies building factories in India to bypass tariffs, labeling it “unfair” to American interests.

Starlink Also in Play

In addition to electric vehicles, Musk is also pushing to launch Starlink’s satellite-based internet services in India. The company has secured initial regulatory clearances and is awaiting spectrum allocation from the government before full rollout.