Mumbai, July 15, 2025 — Following years of rumors, regulatory challenges, and high-level negotiations, Tesla Inc. has officially gone live with its operations in India, a milestone achievement in the nation’s fast-changing electric vehicle (EV) landscape.
The U.S.-based EV giant opened its first Indian “Experience Centre” today in Mumbai’s upscale Bandra Kurla Complex (BKC), offering Indian consumers a firsthand look at its premium electric cars. The launch comes nearly nine years after Tesla CEO Elon Musk first teased the company’s entry into the Indian market in 2016.
High-End Launch with Model Y
The key to Tesla’s Indian launch is the Model Y, which comes in two imported configurations:
- Rear-Wheel Drive (RWD): With a 60 kWh battery delivering a WLTP range of 500 km, priced at ₹59.89 lakh (~$68,000).
- Long-Range RWD: With an expanded battery and an extended range of 622 km, priced at ₹67.89 lakh (~$79,000).
Reservations for both variants opened on July 15, with a token amount of ₹22,222. Deliveries of the basic model are anticipated to start by September 2025, followed by the Long-Range variant in the fourth quarter of the year.
Import Duties Drive Premium Pricing
Thanks to India’s high import duties, upwards of 70% on completely built-up (CBU) cars currently. Tesla’s price positions it solidly in the luxury electric vehicle (EV) segment. The automaker has argued for duty cuts, its Indian strategy currently seems to be aimed at attracting wealthy urban consumers. It develops local alliances and infrastructure incrementally.
The Union Budget 2025 introduced reforms that provided tariff relief to EV makers who agreed to invest at least $500 million and manufacture vehicles locally within three years, aligning with Tesla’s India launch. The company is reportedly negotiating with multiple Indian states to establish a manufacturing facility shortly.
Infrastructure and Hiring Drive Underway
Tesla has already initiated building charging infrastructure in Mumbai and Delhi, with Superchargers and destination chargers that can give more than 250 km of range in 15 minutes. A second Experience Centre is likely to be launched in Delhi-NCR by the end of the year.
The company has also taken office space on lease in Pune and Bengaluru and started recruitment for positions in engineering, sales, and infrastructure building in large cities.
Indian EV Market Still Nascent
Despite the buzz surrounding Tesla’s entry, India’s EV adoption remains relatively modest. Further accounting for just over 4% of total auto sales. According to industry analysts, Tesla’s initial monthly sales may hover around 500–700 units. Tapering off once the early demand wave settles.
Tesla’s existing prices address a niche market. The game-changer will be if they localize production and introduce a sub-₹30 lakh product,” said Rajeev Sharma, an auto sector expert at Counterpoint Research.
Indian Industry Reaction
Tesla’s arrival has been received with a combination of interest and competition from local vehicle manufacturers such as Tata Motors and Mahindra & Mahindra, who now lead the domestic EV market.
Mahindra Group Chairman Anand Mahindra embraced Tesla on X (formerly Twitter) and said:
“Competition drives innovation. There’s plenty of road ahead. Looking forward to seeing you at the charging station, @elonmusk.”
Meanwhile, competitors like BMW, Kia, and BYD will feel the heat in the premium EV SUV space right away.
Road Ahead
Though Tesla’s entry into India has been nearly a decade in the making, it amounts to a long-term pledge. Musk previously referred to India as one of the company’s future markets of importance. Further mentioning the country’s vast population, emerging middle class, and clean mobility ambitions.
Should Tesla press ahead with local production and launch lower-priced model. It’s planned $25,000 global EV, India would be at the heart of the company’s Asian expansion strategy.
For the time being, Tesla’s entry is a symbolic and strategic victory in the world’s largest country. Whether it can convert early interest into sustained market share will have much to do. With how fast it can localize, scale, and compete in a very price-sensitive market.
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