After nearly a decade of expectations and negotiations, Tesla has officially entered India, although there is no steep price for Indian consumers. The automaker led by Elon Musk opened its first showroom in Mumbai yesterday (July 15) and made its long-awaited debut in the country. Tesla is now accepting orders for its Model Y SUV, which starts at over Rs 5.9 lakh ($69,000), a sharp increase from the $45,000 base price for U.S. vehicles
This price difference is largely due to India’s high import tariffs, which range from 70% to 110% of cars. Musk has criticized the taxes several times, citing that they are the main obstacle for Tesla to enter India. Even so, the company has finally moved forward, seeing India as a promising growth opportunity in sales in the United States, Europe and China.
Tesla also plans to build a charging station in Mumbai, the company’s Southeast Asia director. Another showroom will open in Delhi at the end of July, Fan said in an interview with CNBC-TV18, and the company focuses on local hiring.
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Musk’s interest in India dates back to 2016, when Tesla began accepting $1,000 deposits from Indian customers to retain the Model 3. These orders were never fulfilled. In 2021, the company registered a subsidiary in India. But again, no vehicles are for sale.
Musk has held several meetings with Indian officials, including Prime Minister Narendra Modi, over the years, but Tesla’s plans have repeatedly stalled the country’s import policy. In 2022, the company officially suspended its launch in India, citing fears that burdens are a deal.
That deadlock may have finally relaxed. The reconvenation between Modi and Musk appeared to have resumed negotiations earlier this year. In the months since, Tesla has begun recruiting staff and the Scout Hall showroom location. The company currently lists about 35 public positions in India.
Tesla faces sales from previous strong markets
Tesla’s India launch is a turbulent moment for the company as it falls into growth with some of the most important markets. In the United States, Tesla’s delivery fell in the most recent April-June quarter compared to last year. In Europe, sales fell for five consecutive months, with May data showing a year-on-year decline of 28%. In China, Tesla’s revenue is also intensifying competition among domestic automakers such as Byd.
India is the world’s third largest automobile market by sales and now has new growth opportunities. Electric vehicles account for only 2.5% of all vehicles sold in 2024. The Indian government aims to increase this figure to 30% by 2030 through incentives and regulatory support.
“We have been working hard to get into India. India is a very popular market,” said Tesla’s chief financial officer Vaibhav Taneja. Still, he acknowledged that India’s tariff structure remains a major obstacle. The government is reportedly considering import tariffs as part of broader trade negotiations with the United States, but no formal changes have been announced.
Currently, Indian buyers need to pay premiums. The remote Y-type Y is priced at around Rs 67 lakh ($79,000), and the full self-driving package for Tesla is added by Rs 6 lakh ($7,000).
