Tesla will formally enter India’s automotive market next week with the opening of its first showroom in Mumbai, marking a strategic pivot to selling imported vehicles despite CEO Elon Musk’s longstanding objections to the country’s high import tariffs, according to Reuters.
The electric vehicle manufacturer imported approximately $1 million worth of cars, chargers, and accessories ahead of its 15 July launch event at the Bandra Kurla Complex, Mumbai’s premier commercial district.
In invitations issued to media late Thursday, Tesla described the event as the “launch of Tesla in India through the opening of the Tesla experience centre.”
The shipment includes six Model Y vehicles—five standard versions valued at $32,500 each and one long-range variant at $46,000—alongside several Supercharger units. This move comes as Tesla grapples with excess manufacturing capacity at its global factories and declining sales, compelling it to absorb India’s 70% import duty and additional levies on fully built units.
Commercially available customs records from January to June confirm these imports, signalling Tesla’s willingness to test market demand despite financial headwinds.
Tesla hired staff for approximately three dozen positions advertised earlier this year, including store managers, sales executives, and service personnel. Notably, it continues recruiting supply chain engineers and vehicle operators to support its autopilot ambitions in India, indicating a phased approach beyond mere retail presence.
Political context and manufacturing stance
The launch follows years of diplomatic efforts by Indian Prime Minister Narendra Modi’s government to attract Tesla, including a bespoke electric vehicle policy unveiled in March. The policy slashes import taxes to 15% for carmakers investing at least $500 million and establishing local production within three years.
This stance aligns with pressure from US President Donald Trump, who in February warned that Tesla building a factory in India would be “very unfair” to American interests. During a joint Fox News interview with Musk, Trump criticised India’s 100% tariffs on electric vehicles:
Every country in the world takes advantage of us, and they do it with tariffs… It is impossible to sell a car, practically, in, as an example, India.
With local giants like Tata Motors and Mahindra dominating the nascent EV sector, Tesla’s imported models face steep competition despite the symbolic milestone of its Mumbai debut.
