Tesla’s long-anticipated entry into India begins not with a factory, but with a freighter from Shanghai. According to a Bloomberg report, the electric-vehicle giant is importing Model Y crossovers from its Chinese Gigafactory, as it opens its first Indian showroom today in Mumbai, a brand play that echoes its early strategy in China.
A 4,000-square-foot Tesla showroom in Mumbai’s Bandra Kurla Complex opens Tuesday, marking the U.S. automaker’s first physical presence in India. On display: the Model Y crossover, shipped in fully built from Tesla’s Shanghai plant.
But the cars come with a steep price. While the Model Y starts at around $46,000 in the U.S., Indian buyers will pay significantly more — thanks to import duties of 70% and additional cesses on luxury vehicles. The declared value per unit is approximately ₹27.7 lakh ($32,000), but with taxes, the final ex-showroom price is expected to fall between ₹50 lakh and ₹75 lakh for base and mid-level variants. Higher trims could approach ₹90 lakh.
That puts Tesla’s entry squarely in the luxury bracket, competing with German automakers like BMW and Mercedes-Benz rather than local EV leaders like Tata Motors or Mahindra. India’s EV penetration remains under 5%, and luxury cars comprise just 1% of the overall auto market.
Still, analysts see the move as strategic. “It’s not meaningful from a volume standpoint yet,” said Jay Kale, analyst at Elara Securities. “But it plants the brand. Over time, as charging infrastructure improves and the lineup expands, Tesla could scale.”
A second showroom is expected to open in New Delhi by month’s end. The company has also secured warehousing space and ramped up local hiring. However, there are no confirmed plans for domestic manufacturing — something the Indian government has pushed for to bypass high import duties.
Tesla CEO Elon Musk has long lobbied for reduced tariffs, and India’s ongoing trade talks with the U.S. may eventually ease entry conditions. But until then, Tesla’s pricing will remain out of reach for most Indian consumers.
For now, the Shanghai-built Model Y serves as a brand ambassador — signaling presence, not scale.
