Tesla has officially entered the Indian market with the grand opening of its first Experience Centre in Mumbai’s Bandra Kurla Complex on July 15. Positioned as a flagship facility, the 4000 sq ft showroom introduces Tesla’s iconic Model Y to affluent Indian buyers, with deliveries expected in the third and fourth quarters of 2025.
Premium Pricing Reflects Import Duties
With all vehicles imported as complete units, Tesla’s Model Y lineup carries a steep price tag in India. The Rear Wheel Drive variant starts around ₹59.9 lakh, while the Long Range AWD comes in at approximately ₹67.9 lakh, even before additional options like Full Self Driving are added. These prices reflect tariff-driven costs that nearly double the US price, making the vehicles direct rivals to luxury brands like BMW and Mercedes.
Phased Rollout Strategy
Initially limited to Mumbai, Tesla plans to open a second outlet in New Delhi soon. The company has begun hiring local teams for sales, service, and charging operations. It will also install Superchargers and destination chargers in major metro areas to support early customers, indicating a measured entry rather than a nationwide expansion.
Tesla Tests Indian EV Waters
Tesla’s cautious rollout shows it’s testing market demand rather than committing to immediate manufacturing. Despite reduced tariffs for EVs below a certain price point triggered by its entry, Tesla has no confirmed plans to set up a factory in India. Instead, it’s building brand awareness and infrastructure while establishing a foothold in a market where EV sales are still modest but growing.
What This Means for India EV Market
Tesla’s arrival elevates India’s EV profile and pressures local automakers to advance in technology and infrastructure. While its offerings remain expensive, Tesla’s presence signals confidence in India’s electric vehicle potential and could inspire broader industry transformation.
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