Elon Musk-founded Tesla is all set to open the doors of its first-ever showroom in India.
The EV maker is scheduled to inaugurate its showroom in Mumbai on Tuesday, July 15. The store is located at Bandra Kurla Complex, the city’s leading commercial business district, according to an invite sent to media houses. Tesla also operates a service and warehouse centre that is located around six kilometres away from the showroom.
Over the past few months, the company has been importing vehicles, chargers, and other accessories worth over $1 million into India from China and the US, according to a report by Reuters. Based on documents, the report said that the import shipments included six of Tesla’s best-selling Model Y. Hence, these cars can be expected to be on display at the showroom.
Over three dozen people have reportedly been hired to work at the Tesla experience centre in Mumbai, including board store managers as well as sales and service executives. It has also advertised for vacancies for supply chain engineers and vehicle operators responsible for collecting data for its autopilot feature.
Tesla showroom in the US with Tesla Bot on display. (Image: Anuj Bhatia/The Indian Express)
Tuesday’s inauguration officially marks Tesla’s entry into the world’s third-largest car market. It comes at a time when the EV maker is grappling with declining sales in key markets like China. It is also facing issues with excess manufacturing capacity.
Since Tesla will be selling imported cars in India, it will reportedly need to pay about 70% import duty and other levies. CEO Elon Musk has previously complained about India’s high import tariffs.
Additionally, the showroom has received clearance from the authorities. “A trade certificate has been granted to Tesla India following due inspection of the facilities mentioned in their application,” a senior Regional Transport Office (RTO) official was quoted as saying by PTI. “This includes the showroom, vehicle parking area and warehousing facility,” they added.
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Meanwhile, a newly created Tesla India handle on X posted: ‘Coming soon’.
Coming soon pic.twitter.com/kquMXghCnK
— Tesla India (@Tesla_India) July 11, 2025
https://platform.twitter.com/widgets.js
How long has Tesla been eyeing India?
In 2016, Musk had announced that pre-bookings for its Model 3 would be available for customers from many countries outside North America, including India. Soon, many customers in India put up a refundable deposit of $1000 (approx. Rs 85,000 at current exchange rate). Earlier this year, the company initiated refunds to those who had paid the reservation fee as the Model 3 has now been discontinued.
“We would like to return your reservation fee for the time being. When we finalize our offerings in India, we will reach out in the market again. We hope to see you back with us once we are ready to launch and deliver in your country,” Tesla said in emails to the early bookers, according to a report by Bloomberg.
Why is Tesla entering India now?
Tesla has long expressed interest in India. However, its plans to start commercial operations in the country were delayed due to government policies and import duty concerns.
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Once the world’s top EV seller, Tesla is facing increased competition from Chinese EV makers, particularly BYD, as global EV sales growth has tapered.
BYD is said to have an edge in terms of auto technology as well as pricing. It reported sales of over 318,000 passenger vehicles in February, up over 150 per cent from a year earlier, and the Chinese company’s Hong Kong-listed shares are already up nearly 50 per cent this year.
Meanwhile, Tesla shares have been tanking, falling close to 15 per cent and erasing around $150 billion in market value. The feud between Musk and US President Donald Trump has reportedly had a significant bearing on the company’s stock market performance. Without the most influential American’s political backing behind its founder gone, Tesla could also run into headwinds in the US.
Will Tesla manufacture EVs in India?
The central government has been wooing Tesla to manufacture locally for several years now. In a bid to attract the carmaker, the PM Modi-led government introduced a new policy that offered companies a reduced duty of 15 per cent if they set up manufacturing locally and committed to investing $500 million in India.
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In June this year, Union Heavy Industries Minister H D Kumaraswamy said that global EV makers like Mercedes-Benz, Volkswagen-Škoda, Hyundai and Kia have shown interest in applying under the ministry’s flagship Scheme to Promote Manufacturing of Electric Passenger Cars in India. However, Tesla is not keen on manufacturing in India, the minister said.
This comes amid some political pressure, with President Trump stating that it would be unfair to the US if Tesla were to circumvent tariffs imposed by India by building a factory in this country.
Kumaraswamy had said that Tesla is planning to open two retail stores in India, including the Mumbai one. It is unclear where the company is looking to launch the second showroom in the country. According to LinkedIn posts, Tesla has invited job applications for store managers in Delhi.
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