After years of anticipation, Tesla has officially entered the Indian market, marking a significant moment for the electric vehicle (EV) industry in one of the world's fastest-growing automobile markets. The American EV giant has launched its first showroom in Mumbai, located in the upscale Bandra Kurla Complex (BKC).
The new Tesla Experience Centre is situated at the Maker Maxity Mall in BKC. The showroom is designed with a minimalist aesthetic, featuring white-themed interiors and displays showcasing Tesla's innovations. The location is strategically chosen in Mumbai's financial district and is near Apple's flagship store.
Tesla's initial offering in India is the Model Y electric SUV, with prices starting at ₹60 lakh (approximately $70,000). The Model Y will be available in both Long Range RWD and Long Range AWD variants. The vehicles are currently being imported as fully built units from Tesla's Shanghai factory. Tesla has imported six units of the Model Y for display and test drives at the Mumbai showroom. Deliveries are expected to begin in August. The Model 3 will also be displayed, with a later release date in 2025.
The high price of the Model Y in India is attributed to the country's import duties on electric vehicles, which can reach up to 70%. Despite the high cost, the launch signifies Tesla's intent to test the Indian market and establish a base for its premium EVs.
While there was speculation about Tesla manufacturing cars in India, the company will begin operations with fully imported models. Union Minister for Heavy Industries, H.D. Kumaraswamy, clarified that Tesla is currently not interested in manufacturing vehicles in India and is focused on opening showrooms.
The launch of the Mumbai showroom follows Tesla receiving a trade certificate from the Andheri Regional Transport Office (RTO). This certificate permits Tesla to showcase vehicles, conduct test drives, and sell its products in India.
Maharashtra Chief Minister Devendra Fadnavis inaugurated the Tesla Experience Centre in Mumbai. He welcomed Tesla and invited the company to consider Maharashtra for research and development and manufacturing facilities.
Tesla has also been preparing a service center in Kurla West, Mumbai, for maintenance and after-sales support. In addition to the Mumbai showroom, Tesla is expected to open a second store in Delhi. Tesla has been hiring in India and has secured warehousing space. Tesla has also imported Supercharger equipment and accessories worth nearly $1 million into India, with plans to install them in and around Mumbai.
Tesla had previously submitted applications for the homologation of its vehicles in India. This process ensures that the vehicles comply with Indian regulations and are suitable for the country's road conditions.
Tesla's entry into India has been a long process, with initial interest dating back to 2016. High import duties have been a significant hurdle. However, India's new EV policy, which offers reduced import duties and incentives, has potentially paved the way for Tesla's entry.