Tesla to Open First India Showroom in Mumbai, to Sell China-Made Model Y SUVs

Mumbai, June 21, 2025 — Tesla Inc. is all set to make its official debut in the Indian market by opening its first showroom in Mumbai next month, according to a Bloomberg report. The electric vehicle (EV) giant will sell Model Y rear-wheel-drive SUVs, imported directly from its Shanghai Gigafactory in China.

🚘 Imported EVs: Model Y on the Road

Tesla has shipped its first batch of Model Y SUVs to Mumbai. These units are expected to be offered at a premium due to India’s hefty ~70% import duties. The base Model Y RWD is valued at approximately Rs 27.7 lakh (US $32,000) but will retail above Rs 70 lakh (US $84,000) after taxes and duties.

🏢 Strategic Showroom Location

The company has signed a five-year lease for a 4,000 sq ft space in Maker Maxity at Bandra-Kurla Complex (BKC) — a prominent luxury business district in Mumbai. Annual rent is pegged at around $446,000, with a 5% escalation clause.

🧑‍💼 Recruitment & Infrastructure

Tesla has begun hiring for sales and service roles in Mumbai and Delhi, as well as setting up infrastructure for spare parts, Superchargers, and accessories. The company is also expected to open a second showroom in New Delhi soon.

🌐 Strategic Entry Into India

This expansion follows renewed talks between Tesla CEO Elon Musk and Prime Minister Narendra Modi in 2024, paving the way for a compromise on import rules and potential future manufacturing in India.

India — the world’s third-largest automobile market — currently has low EV penetration, particularly in the premium segment. Tesla's entry is seen as a branding and long-term market-building strategy rather than an immediate volume push.

🔮 What's Next for Tesla in India?

Tesla is expected to begin with low-volume imports, aiming for 2,000–2,500 units annually. Analysts suggest a possible shift to local assembly or manufacturing in India if the government introduces incentives or reduces import taxes.

Stay tuned as Tesla electrifies the Indian auto landscape—starting July 2025.