Tesla, the electric vehicle (EV) giant owned by Elon Musk, is all set to begin its much-anticipated India journey, starting with the opening of its first showroom in Mumbai on July 15, 2025. Located in the prestigious Maker Maxity building within the Bandra Kurla Complex (BKC), this new Tesla experience centre will serve as the brand’s flagship entry point into the Indian auto market. According to sources familiar with the development, Model Y SUV deliveries are likely to begin by the end of August.

This marks the beginning of Tesla’s long-awaited entry into India, a move delayed multiple times due to regulatory hurdles, high import tariffs, and disagreements over local manufacturing policies. However, the upcoming launch signals a shift in Tesla’s India strategy, now prioritising direct sales and test marketing through imported vehicles, primarily the Model Y—Tesla’s best-selling EV globally.

Showroom Launch in Mumbai

The Mumbai experience centre will open initially for VIPs and business partners in the first week, followed by access for the general public. Customers will be able to browse Tesla models, check specifications, compare prices, and customise their vehicle configurations at the centre. The facility, spread over 4,003 square feet (372 square metres), is housed in a premium commercial space near Mumbai airport, ensuring visibility and accessibility for potential high-end customers.

The lease, signed on February 16, 2025, is valid for five years with Tesla committing to an annual rent starting at $446,000 (approximately ₹3.89 crore). This will increase by 5% every year, reaching nearly $542,000 in the fifth year. The data, sourced from CRE Matrix, highlights Tesla’s long-term plans for Indian operations and its strategic real estate investments in key metro locations.

Deliveries by August

Tesla’s first batch of Model Y SUVs has already arrived in India via imports from the company’s Gigafactory in China. These vehicles will be delivered to customers starting late August, barring any last-minute delays. The Model Y, a mid-sized electric SUV, enjoys massive popularity across global markets, and its reception in India will provide valuable insights into consumer behaviour and market readiness.

However, buyers will face premium pricing due to India’s high import tariffs, particularly a 70% duty on fully-built units priced under $40,000, and additional levies that could push the on-road price well above ₹55–60 lakh. In comparison, the Model Y retails for $46,630 in the US, highlighting the price disadvantage faced by Indian buyers.

Expansion Plans and National Rollout

After Mumbai, Tesla is reportedly gearing up to open another showroom in New Delhi’s Aerocity area by late July, signifying a dual-market approach focusing on India’s two major economic hubs—Mumbai and Delhi. The company had been scouting locations for over a year and is also hiring aggressively across functions like sales, service, charging operations, and customer experience.

While Tesla’s India entry was stalled in 2022 due to a stand-off over local manufacturing versus import-based sales, the latest developments indicate a renewed interest by the US EV maker to test the Indian waters, especially as it faces global sales pressures and investor scrutiny back home.

Regulatory Challenges and Geopolitical Reactions

Tesla's India entry has been politically sensitive. Former US President Donald Trump previously commented that allowing Tesla to bypass India's import taxes by not setting up a local factory would be “unfair to the US.” Nonetheless, Tesla appears to have found a middle path, testing its product-market fit through CBU (Completely Built Unit) imports before deciding on larger investments like local assembly plants.

Earlier this year, Tesla also received approval from Maharashtra’s RTO, clearing the path for it to start sales operations legally in the state, which houses its first showroom. Despite being an advisory, the RTO nod was a crucial step in Tesla’s compliance process, ensuring it could formally retail and register cars under Indian regulatory norms.

Tesla’s Broader Strategy

Tesla’s timing couldn’t be more critical. The company is coming off a challenging Q2 2025, with global sales dipping amidst criticism of Elon Musk’s political engagements, including the announcement of a political party in the US. The Indian market offers new growth potential, and while volumes may be low initially due to the luxury pricing, Tesla’s entry could act as a brand-building exercise, much like its early US and European playbooks.

As India becomes the world’s third-largest car market, Tesla’s presence could also push EV adoption, infrastructure development, and competitive pricing. Industry insiders suggest that if Tesla’s initial run in India proves successful, the company may reconsider local manufacturing, possibly with favorable government incentives that have been under discussion.

Final Thoughts

Tesla’s India debut with the Model Y SUV represents more than just another product launch. It is the culmination of years of negotiations, policy re-evaluations, and strategic pivoting. While the road ahead is filled with pricing, infrastructure, and regulatory hurdles, the brand’s arrival brings global EV excitement to India.

With showrooms opening in Mumbai and soon in Delhi, and deliveries of the imported Model Y beginning in August, Indian EV enthusiasts finally have their long-awaited Tesla moment. Whether this paves the way for mass adoption or remains a niche luxury experience, will depend largely on pricing strategies, consumer response, and Tesla’s commitment to adapting to India’s unique automotive landscape.

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