Tesla Coming To India: Here’s What We Know
Tesla Inc. is all set to mark its official entry into the country with the inauguration of its first showroom in Mumbai on July 15, 2025. This long-anticipated move by the Elon Musk-led electric vehicle (EV) giant signifies its formal foray into the world’s third-largest automobile market.
The upcoming showroom, described by Tesla as an “experience centre,” will be located at the Maker Maxity building in Bandra Kurla Complex (BKC), Mumbai’s prominent business and retail hub.
According to documents accessed by news agency Reuters, the company has signed a five-year lease for the property beginning February 16, 2025.
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Tesla will reportedly pay $446,000 (approximately ₹3.88 crore) as rent for the first year for a 4,003 sq. ft space, with a 5% annual increase, taking the rent up to about $542,000 by the fifth year.
This launch follows months of groundwork, including Tesla‘s ramped-up hiring across key verticals. Earlier this year, the company advertised over three dozen positions and has since appointed sales executives, service staff, store managers, and is also actively recruiting for supply chain engineers and vehicle operators.
Tesla’s entry into India has not been without challenges. CEO Elon Musk has, in the past, publicly voiced concerns about India’s steep import duties on EVs, which can go as high as 70% when combined with other levies.
Despite this, Tesla has proceeded with importing around $1 million worth of vehicles, Superchargers, and merchandise into India between January and June 2025, primarily from China and the United States. Among these were six units of the best-selling Model Y, five standard variants valued at $32,500 each and one long-range model priced at $46,000.
The strategic decision to begin with imported vehicles, despite the tariff burden, is seen as a stopgap solution while Tesla gauges market demand and explores long-term plans.
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Although the Indian government has, for years, courted the carmaker, including offering revised policies to attract local manufacturing, Tesla has so far not committed to setting up a factory in the country.
Elon Musk’s scheduled India visit in 2024, during which he was expected to announce a $2-3 billion investment, including manufacturing plans, was abruptly cancelled.
Notably, Tesla’s India debut comes at a time when the company is grappling with declining global sales and underutilised manufacturing capacity across its plants.
Industry analysts see the Indian market as both a challenge and an opportunity, with a growing EV adoption curve but also regulatory and cost-related hurdles.
Tesla’s Mumbai showroom launch also aligns with the broader context of India–U.S. trade discussions, hinting at a larger geopolitical and economic interest in the brand’s India presence. A second showroom is expected to open in New Delhi’s Aerocity in the coming months, according to the reports.
