Tesla is getting ready to open its first showroom in India after waiting several years since first sharing its plans to enter the country. The new store will open on Tuesday, July 15, at Bandra Kurla Complex (BKC), a major business hub in Mumbai. This marks a big step for the company in India, the world’s third-largest car market.
What Took Tesla So Long to Enter India?
Back in 2016, Elon Musk had opened pre-bookings for the Tesla Model 3 in countries outside North America—including India. A large number of Indian buyers had placed a refundable booking amount of about ₹85,000 (or $1,000 back then). However, Tesla later started refunding those payments as the Model 3 was discontinued. In the email, Tesla promised to reach out again when it’s ready to officially launch in India.
So why the delay? The company faced major challenges, including
High Import Duties: India’s steep tariffs on imported cars (around 70%) made it difficult for Tesla to price vehicles competitively.
Government Policy Conflicts: India encouraged Tesla to manufacture locally, but the company was hesitant without first testing demand.
Lack of Infrastructure: India’s EV charging infrastructure and regulatory environment were still developing. Now, Tesla is moving forward—but only with retail and import operations for the time being.
What’s Happening at the Mumbai Showroom?
According to reports, Tesla has already begun importing vehicles, chargers, and accessories worth over $1 million from China and the US. These shipments include six Model Y units, which are expected to be displayed in the new showroom.
The company has also hired 30+ employees for the Mumbai outlet, including store managers, sales staff, and service engineers.
Set up a service and storage facility roughly 6 km away from the showroom.
Got necessary clearances from the Regional Transport Office (RTO) for the showroom and related sites.
Why Is Tesla Entering India Now?
Tesla’s worldwide sales have been declining, particularly in major markets such as China. Chinese EV makers like BYD are dominating with affordable pricing and advanced tech. With sales dipping and manufacturing capacity exceeding demand, Tesla is now eyeing new markets—and India presents huge potential.
While BYD’s February sales hit 318,000 units, Tesla’s stock has seen a 15% drop, losing around $150 billion in value. Some say Elon Musk’s strained relationship with former U.S. President Donald Trump is also affecting investor confidence.
Will Tesla Build Cars in India?
India has been urging Tesla to start producing its cars within the country.
In March, the government announced a special EV policy that lowers import duties to 15%—but only for companies that commit to investing at least $500 million and setting up production in India.
Although global automakers like Mercedes-Benz, Hyundai, Kia, and Volkswagen-Škoda have shown interest in the scheme, Tesla hasn’t confirmed any local manufacturing plans. India’s Heavy Industries Minister, H. D. Kumaraswamy, mentioned that Tesla is currently focusing on its showroom business.
Tesla is reportedly working on opening a second showroom in India. While the location hasn’t been confirmed, job postings in Delhi suggest the capital may be next.
