Tesla to launch Mumbai showroom on July 15, to showcase Model 3, Model Y, and Model X
Tesla will also announce booking dates and delivery timelines. The cars will initially be imported from Shanghai. However, once the India-EU Free Trade Agreement is signed, imports from Berlin may begin.
The starting price of Tesla cars is expected to be between ₹50 lakh and ₹60 lakh. The Model X could be priced up to ₹1.5 crore. Deliveries are likely to start in the fourth quarter of 2025.Tesla is also working on a low-cost model for India, which may become a key volume driver. This is believed to be a major reason behind the company’s India entry.
Imported cars in India attract duties of 70% to 100%, which will push up Tesla’s prices. Tesla is hoping for duty reductions through India’s trade talks with the EU and the US. If tariffs drop to around 10-15%, the company may shift imports from the EU.
Though Tesla has a loyal following in India, it will face competition in the ₹50-70 lakh EV segment. Globally, with sales under pressure in markets like China and Europe, Tesla is looking at India to boost its global performance.
According to Arun Bhat, Founder of Tesla Club India, the timing of the launch could be linked to the company’s upcoming compact, affordable model expected later this year. With the Model Y already established globally for a few years, Tesla appears to be using it as a trial run to establish its initial presence, including charging infrastructure, showrooms, and service support—laying the groundwork ahead of the new model’s arrival.
Bhat also noted that sales volume for the Model Y in India is expected to be modest, especially when compared to markets like China, where weekly sales reach 15,000 units. In contrast, annual Model Y sales in India might only reach 8,000 to 10,000 units. This could have contributed to the delayed launch, as Tesla gauges the market response before scaling up.
Hemal Thakkar, Associate Director at CRISIL, noted that Tesla’s entry into India will likely position the company alongside established luxury car brands such as Mercedes, BMW, and Audi. With expected pricing upwards of ₹50 lakh, Tesla will be catering to a niche segment.
He pointed out that this segment accounted for around 6,500 to 7,000 units last year—indicating a relatively small market in volume terms, though it is expanding.
The segment has seen robust year-on-year growth of over 75%, suggesting rising interest in premium vehicles. If the market continues on this trajectory, the segment could reach 8,000 to 10,000 units annually, offering Tesla a foothold, albeit in a limited market.
Thakkar believes that for Tesla to achieve meaningful scale in India, it will need to enter the mass-market category, with offerings priced in the ₹25 to 30 lakh range. He emphasised that this would require significant localisation, including domestic manufacturing.
Without such steps, relying solely on imports could make it difficult for Tesla to remain price competitive while launching global models in India.
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