Elon Musk-led Tesla plans to inaugurate its first showrooms in India this July, according to informed sources, marking its official entry into the world’s third-largest car market, as the company seeks expansion amidst declining sales in European and Chinese markets.The company’s first retail location is scheduled to open in Mumbai by mid July, with a subsequent outlet planned for New Delhi. Documentation indicates that Tesla has imported various components including Supercharger units, vehicle accessories, branded merchandise and spare parts from America, China and the Netherlands.Tesla’s first vehicles have been delivered to India – Model Y rear-wheel drive SUVs from Tesla’s Chinese manufacturing facility, as confirmed by confidential sources and documentation reviewed by Bloomberg. Model Y holds the position of the best-selling electric vehicle globally.
Tesla in India : How much will it cost?
Tesla has imported five Model Y vehicles to Mumbai from its Shanghai facility, the report said. The vehicles were valued at 2.77 million rupees ($31,988). They had an import duty of more than 2.1 million rupees. This duty aligns with India’s standard 70% tariff plus additional charges on complete imported vehicles priced under $40,000.Sources familiar with the strategy indicate the vehicle will be marketed at a price point above $56,000, excluding taxes and insurance. The final retail price will be determined by Tesla based on their profit requirements and market positioning considerations.Also Read | ‘Elon Musk doing amazing work, but…’: Why Sajjan Jindal believes Tesla won’t find it easy in IndiaIn comparison, the identical model retails for $44,990 in the United States, with an effective price of $37,490 after applicable tax credits.The substantial price point presents a significant challenge for Tesla’s market entry, particularly in convincing cost-conscious Indian buyers. According to Indian government vehicle registration data, whilst electric vehicles constitute just over 5% of new passenger vehicle purchases, the premium vehicle segment represents under 2% of total sales.
Tesla Showrooms in India
With its showrooms finally set to open in India, it ends the uncertainty regarding Tesla’s entry into India – a market that has interested Elon Musk but remained inaccessible due to conflicts over tax policies and domestic production requirements. Following Prashanth Menon’s exit, Tesla operates without a country head in India whilst actively expanding its recruitment efforts in charging infrastructure, retail operations and policy divisions.The introduction of Model Y imports marks Tesla’s initial first into the Indian market, with plans to broaden its portfolio by introducing additional vehicle models.The company is securing warehouse facilities in Karnataka, southern India, and expanding storage capacity in Gurugram, near New Delhi, said sources quoted in the report.
No ‘Make in India’ for Tesla
Earlier this month, Heavy Industries Minister Kumara Swamy said that Tesla has expressed no interest in establishing electric vehicle manufacturing facilities in India. Their focus remains solely on opening showrooms in the country.US President Donald Trump has repeatedly expressed concerns about Tesla potentially setting up manufacturing operations in India, describing such a move as ‘very unfair’.Also Read | Tesla India entry: Why Donald Trump has said it would be ‘very unfair’ for Elon Musk’s Tesla to set up a factory in IndiaTesla has shown limited participation in India’s electric vehicle manufacturing initiative discussions. Despite attending the first stakeholder consultation regarding the Scheme to Promote Manufacturing of Electric Cars in India, Tesla representatives were absent from the following two rounds of discussions.
