Tesla to open first India store in Mumbai on July 15, with more to follow

Electric vehicle major Tesla will open its first store in India on July 15 in Mumbai, marking the company’s official entry into the country’s automotive retail space. The Mumbai outlet, located in the financial capital, will function as an “experience centre”, the company said on Friday.

The Elon Musk-led company had secured a lease for the Mumbai location in March as part of its entry into the Indian market. The EV company has also increased hiring efforts and previously explored potential showroom sites in both Mumbai and New Delhi.

Experience centre to open in BKC

Tesla will inaugurate its first experience centre in Mumbai’s Bandra Kurla Complex (BKC), with retail sales expected to begin through imported vehicles, CNBCTV18 reported. Five Model Y vehicles have already arrived in Mumbai from Tesla’s Shanghai factory, according to Bloomberg News. The cars were declared at ₹27.7 lakh ($31,988) and attracted more than ₹21 lakh in import duties — a levy that’s consistent with India’s 70 per cent tariff on fully-built imported cars under $40,000 plus surcharges.

Long road to Indian entry

Tesla’s entry into India has been in progress for several years, with the Elon Musk-led company primarily lobbying for reduced import duties during this period. Although Tesla is initiating its operations in India, reports suggest the EV maker is currently “not keen” on manufacturing components within the country.

Union Minister for Heavy Industries HD Kumaraswamy told news agency ANI last month that Tesla’s primary interest is in expanding its showrooms within India. Kumaraswamy also stated that although Tesla has shown little interest, several global companies—including Hyundai, Mercedes-Benz, Skoda, and Kia—have expressed willingness to establish manufacturing units in India under the Scheme to Promote Manufacturing of Electric Passenger Cars in India (SPMEPCI). The initiative invites global electric vehicle manufacturers to invest and set up local production units in India.

Pricing for Indian market

Tesla could set the Model Y’s price in India at over $56,000 before taxes and insurance, depending on its profit margins and market strategy. By contrast, the same model is priced at $44,990 in the United States or $37,490 after applicable tax credits. This significant price difference could pose a challenge for Tesla, as it will need to appeal to cost-sensitive Indian consumers.

Tesla expands hiring in India

Tesla is ramping up recruitment across its charging, retail, and policy divisions in India. The company has leased warehouse space in Karnataka and is securing additional space in Gurugram.