Tesla has officially opened its first showroom in Mumbai, giving its much-anticipated launch into India’s EV market a physical retail presence at the Maker Maxity Mall in Bandra Kurla Complex. Alongside the showroom debut, Tesla has unveiled the Model Y at a base price of ₹60 lakh, marking a strategic and cautious entry into the Indian automotive space—without local manufacturing, for now.
A guarded entry into India’s premium EV segment
Located in India’s financial capital, the Mumbai showroom reflects Tesla’s retail-first strategy. Staffed by Tesla employees and secured with high-level surveillance, the facility currently displays six imported Model Y units from the company’s Gigafactory in Shanghai. The move is designed to gauge customer interest before any manufacturing commitment.
Model Y price points and variants
Tesla is initially offering the following variants in India:
- Model Y Rear-Wheel Drive: ₹60 lakh
- Model Y Long-Range All-Wheel Drive: Approximately ₹68 lakh
Due to high import duties, on-road prices in cities like Mumbai and Delhi may exceed ₹61 lakh and ₹69 lakh, respectively. These prices are significantly higher than those in markets like the U.S. and China because of import tariffs that can reach up to 100%.
Why the premium pricing?
Since the vehicles are being imported as completely built units (CBUs), they attract steep customs duties and logistical charges. Tesla has opted for this route rather than setting up local manufacturing right away, which would reduce costs but require substantial investment and regulatory alignment.
Despite the high pricing, Tesla appears focused on building a premium brand image in India first. The strategy targets early adopters and tech-savvy luxury buyers in metropolitan areas rather than aiming for mass-market appeal from the outset.
What’s next: Expansion and policy dynamics
The Maharashtra state government has welcomed Tesla’s entry, highlighting policies that support electric vehicle adoption and infrastructure development. Tesla is expected to open a second showroom in Delhi later in July, with customer deliveries anticipated to begin in September 2025.
Tesla has also introduced its Full Self-Driving (FSD) package in India, priced around ₹6 lakh. While FSD may be technologically ahead of current Indian road infrastructure and regulations, its presence indicates Tesla’s long-term commitment to making advanced features available globally.
Strategic context: Brand building over manufacturing
India has been pushing for local EV manufacturing through policy incentives. However, Tesla’s decision to delay factory setup reflects a cautious market-testing approach. By starting with imports, the company can understand consumer behavior, test infrastructure capabilities, and navigate policy complexities without long-term capital lock-ins.
This retail-first, import-based model allows Tesla to maintain flexibility in a new and highly price-sensitive market. It also serves as a barometer for future decisions regarding local assembly or full-scale production.
Why this matters
- For Tesla: It’s a significant move to enter Asia’s third-largest car market and build a premium EV brand in a traditionally cost-conscious space.
- For India: Tesla’s arrival adds international credibility to India’s growing EV ecosystem and could accelerate infrastructure investments.
- For consumers: It introduces a new benchmark for technology-driven electric mobility, albeit at a steep price point.
Final analysis
The launch of Tesla’s first showroom in Mumbai and the debut of the Model Y starting at ₹60 lakh mark a milestone in India’s EV journey. While the premium pricing limits immediate mass-market penetration, the move is a strong indicator of Tesla’s intention to explore and eventually expand within the Indian automotive landscape.
With more showrooms on the way and deliveries expected in the coming months, Tesla’s India play is officially underway. How the market responds—especially in a high-duty, high-expectation environment—will shape the company’s next steps and potentially redefine the country’s premium EV segment.
Photo Credit: Mint
