Tesla To Open India Showrooms In July With China-Made EVs
Tesla is set to officially enter the Indian market in July 2025 with the opening of its first showrooms in Mumbai and New Delhi, marking a major step in its global expansion. The electric vehicle giant plans to begin operations with the import of Model Y SUVs manufactured at its Shanghai Gigafactory.
The Mumbai showroom is expected to open by mid-July, followed shortly by the Delhi outlet. These retail centers will not only showcase Tesla’s vehicles but also serve as service hubs, helping establish Tesla’s footprint in the Indian auto sector.
Tesla India Entry
Initial imports include five units of the rear-wheel-drive Model Y, with each vehicle declared at approximately ₹27.7 lakh (USD 32,000) before taxes. However, after import duties, cesses, and Tesla’s own pricing margin, the effective price is expected to exceed $56,000 per vehicle. This pricing strategy places the Model Y squarely in India’s luxury EV segment, targeting high-income consumers in urban areas.
Tesla has also imported related components, including Supercharger infrastructure, accessories, and merchandise to support its premium rollout. While the vehicles and equipment are being sourced globally, including from China, the United States, and Europe, there is currently no local manufacturing in place.
EV Import
Tesla’s India entry comes without a manufacturing commitment under the government’s incentive-linked EV production scheme. Instead, the company is relying on fully built-up unit imports and a gradual scale-up through retail, warehousing, and service channels. Tesla has already leased facilities in Karnataka and Gurugram to support its operations, and recruitment for sales, service, and support roles is underway.
This comes on the heels of policy clarifications and regulatory engagement earlier this year, including high-level discussions between Elon Musk and Prime Minister Narendra Modi. While Tesla has secured tariff concessions as part of India’s revised EV policy, it has not yet committed to a local factory—an option still open for future consideration.
Market Potential
India’s EV market, though growing, remains small—accounting for just over 5% of total car sales, with luxury EVs making up less than 2%. Tesla’s pricing may pose a challenge in a price-sensitive environment, but brand prestige and technological appeal could attract affluent urban buyers.
The strategic choice to enter with premium imports allows Tesla to gauge the market while sidestepping immediate production costs. It also offers an opportunity to test demand before scaling investment or considering local assembly.
