Elon Musk's Tesla to open first showroom in Mumbai next month: How much will it cost in India? Report claims...

Tesla is finally entering the Indian market, with its first retail showroom expected to open in Mumbai in July, according to a Bloomberg report. This marks a major milestone for Elon Musk’s electric vehicle (EV) company as it looks to tap into the world’s third-largest car market, especially at a time when sales are slowing down in Europe and China. A second showroom is likely to open soon after in New Delhi.

Tesla has already begun importing its first batch of Model Y electric SUVs to India, along with related components. These include Supercharger units, spare parts, branded merchandise, and vehicle accessories shipped from the US, China, and the Netherlands.

The Model Y, which is currently the world’s best-selling EV, was brought in from Tesla’s Shanghai factory. Five rear-wheel drive units have been delivered to Mumbai, each valued at about Rs 27.7 lakh (nearly $32,000). The cars faced import duties of more than Rs 21 lakh each, due to India’s 70% tax on fully-built imports under $40,000, along with other charges.

In India, the Model Y is expected to cost over $56,000 (excluding taxes and insurance)—much higher than its US price of $44,990 or $37,490 after incentives. This high pricing could pose a challenge in India, where most consumers are price-conscious.

Currently, electric vehicles make up just over 5% of new passenger car registrations in India, and premium vehicles are less than 2% of the overall market. Tesla will need to carefully position itself in this economic environment.

Despite earlier delays due to disagreements over import taxes and local manufacturing, Tesla now seems committed to its India plans. Although the company doesn’t have a country head at the moment—after Prashanth Menon’s exit—it is hiring for key roles in retail, public policy, and EV charging infrastructure.