• Tesla launches its first showroom in Mumbai, showcasing the Model Y.
• The Model Y is priced at Rs 61 lakh, significantly influenced by high import duties.
• Deliveries of Model Y units are set to begin in October 2025.
• Future plans for production in India remain uncertain amid tariff discussions.
• Government incentives may pave the way for expanded operations and local manufacturing.

Tesla has officially entered the Indian market with the opening of its first showroom in Mumbai's Bandra Kurla Complex (BKC) on July 15, 2025. This marks a significant milestone for the electric vehicle (EV) maker, as it seeks to tap into one of the world's largest automobile markets, albeit through a cautious retail-first approach, with current operations focusing on selling imported vehicles rather than establishing local manufacturing as of yet, according to Indiatimes and Reuters.

The debut showroom, located at the Maker Maxity Mall, features the Model Y, with its on-road price starting at Rs 61 lakh (approximately $70,000). The model is notably pricier than its counterparts in other international markets, primarily due to India's steep import tariffs, which can reach up to 100%. The rear-wheel drive Model Y is priced at Rs 59.89 lakh, while the long-range variant retails for Rs 67.89 lakh, creating a substantial gap compared to starting prices in the US, China, and Europe, according to South China Morning Post and Al Jazeera.

Deliveries of the Model Y are projected to commence in October 2025. Elon Musk's decision to prioritize imported sales reflects the ongoing negotiations with the Indian government regarding tariffs and local manufacturing incentives. The Indian government recently introduced a new EV policy aimed at reducing import duties for manufacturers willing to invest in local production, which could influence Tesla's potential growth in the region, as highlighted by Indiatimes and Indiatimes.

Maharashtra's Chief Minister Devendra Fadnavis has expressed optimism about Tesla's potential in India, emphasizing the state's readiness to support the necessary charging infrastructure and research initiatives. Despite high prices and initial limited volumes, analysts expect Tesla’s presence to elevate industry standards and consumer expectations in India's burgeoning EV market, according to Dawn and Al Jazeera.

While Tesla aims to gauge demand in India through its initial showroom in Mumbai, the company is also preparing to expand its footprint with a second showroom planned for New Delhi. The transition will depend on consumer reception and the evolution of the local EV landscape, where competition from both domestic and foreign brands is intensifying, thereby pushing Tesla to adapt its strategy accordingly, according to Indiatimes, Indiatimes, and Indiatimes.