Tesla to Launch First India Showroom in Mumbai, Deliveries Expected from Late August

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Mumbai, 12th July 2025: Electric vehicle giant Tesla is set to open its first showroom in India in Mumbai on Tuesday, with customer deliveries likely to begin by late August, according to people familiar with the matter. The move marks the formal entry of Elon Musk’s company into one of the world’s largest automobile markets, at a time when global sales are under pressure.

The Mumbai showroom will serve as Tesla’s flagship location in India, providing customers with access to pricing, variants, and customization options, said a person familiar with the rollout plans, who declined to be named due to the sensitive nature of the information. According to documents reviewed by Bloomberg, the company will allow customers to configure and place orders for their vehicles starting next week.

A second showroom, this time in New Delhi, is expected to open by late July, further expanding Tesla’s footprint in the country.

First Deliveries: Tesla Model Y
The first batch of Tesla vehicles to be sold in India includes the Model Y rear-wheel-drive SUV, manufactured at Tesla’s Shanghai Gigafactory. Bloomberg previously reported that these units had already reached Indian shores in preparation for the launch.

Internal documents indicate that five Model Y units were declared at approximately ₹27.7 lakh ($32,270) each. However, due to India’s 70% import duty on fully built electric vehicles priced under $40,000 — plus additional levies — the final retail price is expected to be significantly higher, well above the U.S. sticker price of $46,630.

VIP Launch First, Public Access to Follow
The first few days of the showroom’s opening in Mumbai will reportedly be reserved for VIP guests and business associates, with public access opening the following week, sources added.

A Strategic Move Amid Global Slowdown
Tesla’s entry into India comes at a pivotal moment. The company experienced a drop in global sales during the second quarter, despite Elon Musk previously stating that business had bounced back. The Indian market, ranked third globally in automobile sales, presents an opportunity to offset slowdowns in more saturated markets.

The launch also follows years of deliberation over high import duties, which Tesla had cited as a major hurdle. Vaibhav Taneja, Tesla’s CFO, had acknowledged during a recent earnings call that tariffs remained a key concern for the company when deciding on India market entry.

While Tesla has yet to issue an official statement regarding its India expansion, the company’s latest moves suggest that it is finally ready to test consumer appetite for premium electric vehicles in a market still warming up to EV adoption.

Whether Indian buyers will embrace Tesla at a premium price remains to be seen, but the company’s arrival is likely to shake up the country’s EV landscape and spur competition among both domestic and international players.