Tesla Inc. officially launched operations in India on Tuesday with the opening of its first showroom in Mumbai. The state-of-the-art retail space, located in the Maker Maxity Commercial Complex in Bandra Kurla, spans 4,000 square feet and signals Tesla’s commitment to entering the world’s third-largest car market.
Maharashtra Chief Minister Devendra Fadnavis inaugurated the showroom, expressing optimism that Tesla will eventually establish research, development, and manufacturing hubs in India. According to Fadnavis, Tesla’s entry could transform India’s EV landscape by inspiring innovation and attracting further investment.
At the event, Tesla displayed two of its Model Y vehicles, which will be the company’s first offering in India. The base Model Y rear-wheel drive starts at $70,000, while the long-range variant is priced at approximately $79,500. Tesla’s pricing in India is nearly one-third higher than in the United States because of India’s substantial import tariffs, which range from 70% to 110%.
Tesla’s arrival coincides with a pivotal moment for India’s electric vehicle industry, which is still in its early stages. Electric cars accounted for just over 2% of India’s total auto sales last year. Meanwhile, Tesla has experienced a decline in global sales between April and June, partly due to CEO Elon Musk’s political engagements.
The Mumbai showroom features a sleek design with the Tesla logo set in black against a white wall, emphasizing the brand’s luxury positioning. Tesla is expected to compete with high-end manufacturers such as BMW and Mercedes-Benz in India, rather than local EV makers like Tata Motors or Mahindra & Mahindra.
Experts believe Tesla’s presence will act as a catalyst for India’s EV market, encouraging technological advancements and wider adoption. Looking ahead, Tesla plans to open a second showroom in New Delhi by next month. The company has already started hiring for local positions and is securing warehouse facilities in the capital, signaling its long-term strategy for India.
