Tesla is rapidly expanding its India footprint with a second showroom in New Delhi scheduled to open in late July, just weeks after launching its first Mumbai location on Tuesday. The aggressive rollout marks the electric vehicle maker’s formal entry into the world’s third-largest automobile market as it seeks growth amid slowing global sales.The Mumbai showroom opening will give prospective customers access to pricing, variants, and trim options for Tesla’s Model Y rear-wheel drive SUVs imported from China. Deliveries are expected to start from late August, with customers able to configure and order their Tesla EVs from next week, according to people familiar with the matter who spoke to Bloomberg News.
High import duties could drive up Tesla prices in India
The Model Y units, declared at approximately 27.7 lakhs rupees ($32,270) each, will sell at a substantial premium due to India’s 70% import tariff on fully-built imported cars under $40,000. The vehicles are expected to retail for more than $56,000 around 48.07 lakhs rupees before taxes and insurance, compared to roughly $46,630 in the US market.
With stores coming to India, Tesla invests in building its team across divisions in India
Tesla is beefing up hiring across charging, retail, and policy teams while leasing warehouse space in Karnataka and Gurugram. The company has imported Supercharger components, car accessories, merchandise, and spares from the US, China, and the Netherlands to support its operations.The first week of Mumbai showroom operations will focus on VIPs and business partners before opening to the general public. Tesla’s success in India will test consumers’ acceptance of premium pricing in a market where EVs account for just over 5% of passenger vehicle sales and premium cars represent less than 2% of total sales.Tesla’s entry comes at a crucial time as the EV maker faces slowing global sales in the second quarter. The company had previously delayed its India launch due to disagreements over tariffs and local manufacturing requirements, but breakthrough came after Elon Musk met Indian Prime Minister Narendra Modi in February.
