Elon Musk’s Tesla is finally making its official entry into the Indian market with the launch of its first retail outlet. According to Reuters, the electric vehicle (EV) giant will open its first “experience centre” on July 15 in Mumbai. The store will be located in the upscale Bandra Kurla Complex (BKC), marking Tesla’s first physical presence in India.
Tesla Ships Model Y Cars from Shanghai
As part of its debut, five Model Y cars have already arrived in Mumbai. These units were shipped from Tesla’s manufacturing facility in Shanghai, China, according to a report by Bloomberg. The vehicles were priced at ₹2.77 million (around $31,988) each. However, due to India’s high import taxes, each car also attracted over ₹2.1 million in import duties.
India currently imposes a 70% tariff on fully built imported vehicles, significantly increasing the final cost of Tesla cars for Indian buyers.
Tesla Has Lobbied for Lower Import Duties
Tesla’s move into India has been in the pipeline for several years. During past negotiations, the company repeatedly pushed for lower import tariffs to make its cars more affordable in the Indian market. This long-standing demand had previously stalled Tesla’s entry.
Company Not Ready for Local Manufacturing
Despite launching its first store, Tesla reportedly has no plans to start manufacturing parts or assembling cars in India for now. Last month, Union Minister for Heavy Industries, HD Kumaraswamy, confirmed this during an interview with ANI.
Speaking on Tesla’s approach, he said, “Tesla, we are not actually expected from them, they are only to start showrooms. They are not interested in manufacturing in India.”
This means Tesla’s focus, at least in the short term, is on setting up retail and service infrastructure rather than local production.
