Mumbai, India - Jul 13, 2025 - Mumbai, July 13, 2025 – After years of anticipation, Tesla, the global leader in electric vehicles (EVs), is officially entering the Indian market. On July 15, 2025, the company will open its first showroom, an “experience centre,” in Mumbai’s upscale Bandra Kurla Complex (BKC), a prominent business hub. This launch marks a pivotal moment for Tesla as it introduces its cutting-edge electric vehicles to one of the world’s largest automotive markets, with the Tesla Model Y leading the way.
Launch Details
Tesla’s entry into India has been in the works for years, with the company signing a lease for its Mumbai showroom in March 2025. The experience centre, opening on July 15, 2025, will allow customers to explore Tesla’s innovative technology firsthand. The first model available in India will be the Tesla Model Y, a fully electric mid-size SUV, with deliveries expected to begin by late August 2025. Five Model Y vehicles have already arrived in Mumbai from Tesla’s Shanghai factory, each valued at approximately 27.7 lakh rupees ($31,988), though import duties of over 21 lakh rupees per vehicle, due to India’s 70% tariff on fully-built cars, inflate costs.
The Tesla Model Y is priced at approx. Rs 48 lakh in India (before road tax and insurance), compared to Rs 38.8 lakh in the US. This price difference reflects the high import tariffs, as Tesla has not yet committed to local manufacturing. According to Union Minister HD Kumaraswamy, Tesla has shown no interest in producing parts in India, which could impact its long-term pricing strategy.
Tesla Model Y: Features and Specifications
The Tesla Model Y, the first vehicle to be offered in India, is a redesigned, fully electric mid-size SUV known for its blend of performance, technology, and practicality. Below are its key features:
| Feature | Details |
|---|---|
| Range | EPA-rated 526 kilometers on a single charge, ideal for long-distance travel |
| Performance | 0-96 km/h in 4.6 seconds, top speed of 200 km/h |
| Infotainment | 15.4-inch central touchscreen with Netflix, Hulu, YouTube, and video games |
| Rear Display | 8.0-inch touchscreen for rear passengers, offering entertainment and climate control |
| Safety | Advanced safety features with standard driving-assist system |
| Autonomous Driving | Optional Full Self-Driving (Supervised) technology |
| Convenience | Hands-free power trunk opening, ventilated seats (higher trims) |
| Design | Full-width light bar for daytime running lights and tail lights, improved aerodynamics |
The Model Y’s spacious interior, quieter cabin, and advanced safety features make it a standout in the EV market. Its large infotainment display serves as the control hub for nearly all functions, from climate settings to navigation, while the rear display ensures passenger comfort. The optional Full Self-Driving technology, though not fully autonomous, offers advanced driver-assistance capabilities, with regular over-the-air software updates to enhance functionality.
Market Context and Competition
India’s electric vehicle market is expanding rapidly, fueled by growing environmental awareness and government policies promoting clean energy. Tesla’s entry is poised to elevate the premium EV segment, competing with both traditional automakers and emerging EV brands. A recent analysis of the autonomous vehicle market in the USA highlighted Tesla’s technological edge, which could give it a competitive advantage in India. However, the high cost of imported vehicles may limit its appeal to a niche, affluent audience initially.
The Indian government has been pushing for local manufacturing to reduce import duties and make EVs more affordable. Tesla’s decision to import rather than manufacture locally, as noted by Union Minister Kumaraswamy, could pose challenges in a price-sensitive market. Despite this, Tesla’s brand appeal and innovative features are likely to attract significant interest.
Implications for Indian Consumers
For Indian consumers, Tesla’s arrival introduces a new standard of electric mobility. The Model Y’s long range, rapid acceleration, and advanced technology make it an attractive option for those seeking sustainable luxury vehicles. However, its high price point may restrict its reach to urban, high-income buyers. The experience centre in Mumbai will allow potential customers to test drive the Model Y and explore its features, potentially building demand ahead of deliveries.
Future Plans
While the Model Y is the first Tesla vehicle to launch in India, other models, such as the Tesla Model S and Model 3, are expected to follow, with tentative launch dates in 2026. The Model S and Model 3 are priced between Rs 70 lakh and Rs 1 crore, according to early estimates, though these timelines and prices may shift based on Tesla’s strategy and market response. Tesla’s focus on imported vehicles suggests that pricing will remain a hurdle unless the company reconsiders local production.
A New Era for Electric Mobility in India
Tesla’s launch in India is more than just a new car brand entering the market; it represents a shift toward sustainable, technology-driven transportation. The Model Y’s combination of performance, range, and cutting-edge features sets a high bar for competitors. As Tesla establishes its presence with the Mumbai showroom, all eyes will be on how it navigates India’s unique market dynamics, from high import tariffs to growing demand for eco-friendly vehicles.
