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Tesla has officially entered the Indian market with the launch of its first showroom in Mumbai on Tuesday, marking a major milestone for Elon Musk’s electric vehicle company. The debut comes as Tesla looks to attract new customers amid declining sales in the US and Europe.
The Mumbai showroom was inaugurated by Maharashtra’s Chief Minister Devendra Fadnavis and will open to the public on Wednesday. Tesla is initially offering its Model Y in India, with plans to introduce a more affordable variant later this quarter. Charging stations in Mumbai and New Delhi are also set to follow soon.
By Ropafadzo Mashawi
For years, Tesla showed interest in India but stayed away due to high import taxes. Musk previously called India’s import duties among the highest in the world. Although New Delhi has offered tariff reductions in exchange for local investment, Tesla has not yet committed to setting up a manufacturing plant in the country.
According to reports, Tesla is currently importing vehicles from China, which places the starting price for the Model Y at around $70,000 in India-almost double its US price after incentives. This pricing makes Tesla more of a luxury brand in India, limiting its appeal to wealthy buyers.
Despite the fanfare around its launch, experts suggest Tesla’s presence in India will start modestly. Analyst Soumen Mandal predicts initial monthly sales between 500 and 700 units, dropping to 200-300 per month later, citing the high cost and limited EV infrastructure as key barriers.
India’s EV market is growing but still represents a small slice of the auto industry, with electric vehicles making up less than 3% of total car sales in 2024. While a trade deal with the US could ease Tesla’s path, its journey in India will depend on pricing, local investment, and how quickly the EV ecosystem develops.
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