Tesla Comes To Mumbai: What Delayed Its Indian Market Entry?

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Elon Musk’s Tesla is finally set to enter the Indian market officially, and excitement is building fast. On 15 July, Tesla will unveil its first-ever showroom in India, located in Mumbai’s upscale Bandra Kurla Complex (BKC). But while the showroom opening feels like the start of something new, the story of Tesla in India goes back nearly a decade – and it hasn’t been an easy road.



A showroom years in the making


Tesla first sparked Indian interest back in 2016 when it announced pre-bookings for the Model 3. Thousands of fans rushed to pay the $1000 deposit, eager to see Tesla on Indian roads. But things didn’t move forward. In fact, Tesla later refunded these deposits as its India plans stalled.

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Years of policy uncertainty, high import duties of around 70%, and disagreements over local manufacturing slowed Tesla’s entry into the world’s third-largest car market. Even Elon Musk publicly complained about India’s steep tariffs making imported EVs too expensive.


Finally happening: Tesla Model Y could lead the charge


Now, things are finally moving. According to reports, Tesla has imported six units of its popular Model Y SUV into India. So, it’s widely expected that the showroom will showcase the Model Y first. The Model Y is known for its sleek design, spacious interior, panoramic glass roof, and tech features like a 15-inch touchscreen and over-the-air software updates.


The Model Y could cost around ₹75 lakh (ex-showroom), and promises a driving range of up to 530 km and acceleration from 0-100 km/h in under five seconds.


Behind the scenes: Setting up for India


Tesla hasn’t stopped at the showroom alone. It has set up a service and warehouse facility about six kilometres from the showroom, and hired over three dozen staff for the Mumbai experience centre. Job postings also reveal Tesla is recruiting for roles like store managers in Delhi, hinting that another showroom could follow soon.

Why now?


Globally, Tesla is under pressure. Competition from Chinese EV giant BYD is heating up, and Tesla’s sales in key markets like China have slowed. Entering India offers Tesla fresh growth potential in a booming EV market.

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But Tesla still isn’t keen on manufacturing in India, despite government efforts like offering lower import duty if companies invest $500 million locally. Political dynamics – including Elon Musk’s changing relationship with figures like Donald Trump – have also reportedly played a role.

What’s next for Tesla India?


The Mumbai showroom opening on 15 July is more than just a store launch – it’s a symbol that Tesla is finally serious about India. Indian EV enthusiasts who’ve waited years may finally get to see – and perhaps own – a Tesla.


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What happens next depends on whether Tesla decides to commit more deeply: local manufacturing, wider service networks, and new models. But for now, the long wait is almost over.