Tesla is preparing to open its first retail locations in India this July, culminating what has been a years-long effort to enter the world’s third-largest auto market. The first showrooms will be located in Mumbai and New Delhi, with operations expected to begin as early as mid-July, Bloomberg reports.
The initial launch will feature Tesla’s Model Y Rear-Wheel Drive (RWD) imported from Giga Shanghai. According to documents reviewed by Bloomberg, five units have already landed in Mumbai. While the vehicles were declared at ₹2.77 million (~US$32,000), they attracted over ₹2.1 million in import duties—consistent with India’s steep 70% tariff on fully assembled vehicles priced below US$40,000.
Once surcharges and other markups are added, the Model Y is expected to retail for over US$56,000 before taxes—significantly higher than its US$44,990 sticker price in the U.S. (Canada is a whole different story).
Despite the high entry price, Tesla hopes to target affluent buyers in India’s premium vehicle segment, which currently accounts for less than 2% of overall car sales. While EV adoption is slowly rising—just over 5% of new car sales in India are electric—the market remains highly price-sensitive, posing a challenge to Tesla’s expansion strategy.
Tesla has also imported Supercharger hardware, car accessories, and spare parts from the U.S., China, and the Netherlands in preparation for launch.
To support its operations, Tesla is ramping up hiring in India, focusing on roles in charging infrastructure, retail operations, and policy engagement. The company is leasing warehouse space in Karnataka and Gurugram and is expected to add more models over time to broaden its product offering.
Although Tesla has not appointed a new country head following the departure of Prashanth Menon, executives from other markets are reportedly making weekly visits to oversee progress ahead of the launch.
