After several near misses, Tesla hits Indian market with showroom in Mumbai

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Tesla has officially entered the Indian market with the launch of its first showroom—dubbed an 'Experience Center'—at Maker Maxity Mall in Mumbai's Bandra Kurla Complex. 

The 4,000-square-foot center showcases the Model Y in two variants: rear-wheel drive (RWD) and long-range RWD, both imported from Tesla's Shanghai factory. 

Prices start at Rs 59,89,000 (approx USD 68,000) for the RWD and Rs 67,89,000 (approx USD 79,000) for the long-range version. A Rs 600,000 (USD 7,000) full self-driving add-on is also available.

Bookings open today for customers in Delhi, Gurugram, and Mumbai with a non-refundable Rs 22,220 (USD 260) deposit. Deliveries of the RWD variant are set for Q3, while the long-range RWD will follow in Q4.

Tesla has committed to setting up four charging stations in Mumbai and Delhi and plans to open a second store in the capital later this month.

The Mumbai showroom marks a long-delayed debut—nearly nine years after CEO Elon Musk first hinted at entering India in 2016. Despite collecting USD 1,000 deposits for the Model 3 that year, Tesla shelved its plans amid regulatory bottlenecks, steep import tariffs, and demands from the Indian government to set up local manufacturing.

The biggest sticking point was India's 100 per cent import duty on fully built EVs. Tesla resisted setting up a factory without first testing demand via imports, while Indian officials insisted on local production. 

Negotiations saw frequent starts and stops, including direct talks between Musk and Prime Minister Narendra Modi.

In a possible turning point, India slashed import duties on EVs in 2024, making it more feasible for Tesla to enter without committing to domestic manufacturing. 

Sources say the breakthrough may have followed high-level discussions during Modi's 2025 visit to the US, where he met Elon Musk, and discussed a range of issues. 

Still, Tesla has no India CEO and recently lost Prashanth Menon, its country operations head. CFO Vaibhav Taneja is now overseeing the market. 

Tesla's entry comes at a time when its global fortunes are faltering. Q2 2024 saw a 13 per cent drop in global deliveries to 443,956 units, its third consecutive quarterly decline. 

US sales were down 13 per cent in H1, and European sales fell 28 per cent in May. 

In China — its second-largest market — Tesla faces stiff competition from local EV players like BYD, which is also active in India.