Tesla to open first India showroom in Mumbai in July, kicks off formal debut with Model Y SUVs: Report

This marks the electric vehicle (EV) giant’s formal entry into the world’s third-largest car market after years of negotiations and stalled talks over import tariffs and local production.

The Elon Musk-led company has already brought in its first batch of cars — Model Y rear-wheel drive SUVs manufactured at its Shanghai facility — signalling the start of retail operations.

Documents reviewed by Bloomberg News confirm the shipments, along with the import of Supercharger parts, accessories, spares, and merchandise from China, the US, and the Netherlands.

Musk-Modi meeting helped seal the breakthrough

Tesla's long-awaited India debut comes months after Musk met Prime Minister Narendra Modi in the US in February.

That meeting helped break the deadlock over Tesla’s concerns about India’s steep import duties and lack of policy clarity on EV incentives.

Bloomberg had earlier reported that a few thousand Tesla vehicles were expected to arrive at a port near Mumbai.

Now, the company is not only pushing ahead with showrooms but also expanding warehousing infrastructure in Karnataka and Gurugram.

Premium pricing may limit appeal

While five Model Y units have already landed in Mumbai, their import declaration value stands at ₹2.77 million ($31,988), attracting over ₹2.1 million in duties, in line with India’s 70% levy on fully built EVs under $40,000.

The model is expected to retail at over $56,000 before taxes and insurance — significantly higher than its $44,990 ex-showroom price in the US, where EV buyers also benefit from federal tax credits.

This steep pricing could pose a challenge in India’s value-conscious car market, where premium vehicle sales account for under 2% and EVs comprise just over 5% of new passenger vehicle registrations.

Showroom push and hiring underway

Although Tesla has yet to appoint a new India head following Prashanth Menon’s exit, it is rapidly hiring for teams across policy, retail, and charging infrastructure.

Meanwhile, executives from other international markets are making weekly visits to oversee preparations at the Mumbai and New Delhi showrooms, both of which are being set up in luxury business districts to attract high-end consumers.

The initial Model Y rollout is part of a broader strategy.

Tesla intends to follow up with more offerings in the Indian market, expanding both its product range and physical presence as it seeks to tap into the country’s growing EV ecosystem.