Tesla to launch India showrooms in July with China-made Model Y EVs

Tesla will open its first showrooms in India in July, starting with Mumbai and New Delhi, bringing in China-made Model Y EVs as it seeks growth amid slower sales in Europe and China

Elon Musk-led Tesla will open its first showrooms in India next month, according to a Bloomberg report quoting sources. The electric vehicle maker is entering the world’s third-largest car market as it looks for growth amid declining sales in China and Europe.

 

Tesla is expected to open doors to its first showroom in Mumbai by mid-July. A second showroom in New Delhi will follow soon after, the report added.

 

The first batch of Tesla cars has already reached India. These are Model Y rear-wheel drive SUVs, made in Tesla’s factory in China. “Model Y is the world’s largest selling electric car,” as per the automaker.

   

The company has also shipped Supercharger parts, accessories, merchandise and spare parts from the US, China and the Netherlands.

Breakthrough after years of delays

Tesla’s India launch will end years of delay and anticipation. Musk has long shown interest in the Indian market, but progress was held up by disputes over tariffs and local production. A breakthrough came after Musk met India’s Prime Minister Narendra Modi during his US visit in February this year. 

 

Completely Built Up (CBU) passenger vehicles that cost more than $40,000 face an import duty of 70 per cent, with an additional 40 per cent Agriculture Infrastructure and Development cess, making them prohibitively expensive. Completely Knocked Down (CKD) passenger vehicles that need to be assembled locally must pay a 15 per cent basic customs duty and 1.5 per cent social welfare surcharge.

 

Tesla has not issued any statement on the matter so far. 

Premium price for Indian market

Five Model Y cars have arrived in Mumbai from Tesla’s Shanghai plant, according to documents reviewed by Bloomberg. They were declared at ₹27.7 lakh (around $31,988) each, attracting more than ₹21 lakh in import duties, which matches India’s 70 per cent customs tariff on fully built-up imported passenger vehicles priced under $40,000.

 

Tesla may price the Model Y at over $56,000 in India before taxes and insurance, depending on its margins and market positioning. In comparison, the same model is priced at $44,990 in the US — or $37,490 after tax credits.

 

The steep pricing may be a challenge for Tesla, as the company will have to win over price-conscious Indian buyers. While EVs now make up just over 5 per cent of new passenger vehicle sales in India, premium cars are still under 2 per cent, according to data from the government's vehicle registration portal.

Tesla expands hiring, infra in India

Tesla is increasing hiring across its charging, retail, and policy teams. The initial Model Y shipment is just the start, with the carmaker planning to expand its presence and offer more models. It has leased warehouse space in Karnataka in the south and is adding more space in Gurugram, a splashy neighbour of the national capital of New Delhi.

 

Tesla executives from other countries are now visiting India on an almost weekly basis to inspect the Mumbai and New Delhi showrooms, which are located in premium business districts to attract wealthy buyers.