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Tesla to launch its first showroom in India with Made-in-China EVs in July: Report

Tesla to launch its first showroom in India with Made-in-China EVs in July: Report

Tesla is set to open its first showroom in Mumbai in July, followed by one in New Delhi. The automaker has imported Model Y SUVs from China and aims to expand its market presence in India, targeting premium car buyers.

Business Today TV
Business Today TV
  • Updated Jun 20, 2025 9:29 PM IST
Tesla to launch its first showroom in India with Made-in-China EVs in July: ReportTesla

Tesla, the electric vehicle (EV) giant, is poised to expand its global footprint by opening its first showrooms in India starting in July. The company plans to inaugurate its initial showroom in Mumbai and subsequently, another in New Delhi, Bloomberg News reported on Friday. This move comes as Tesla introduces its Model Y rear-wheel drive SUVs, which have been shipped from its production facility in China.

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These efforts mark Tesla's official entry into the Indian market, a venture that has been anticipated for several years but delayed due to tariff disagreements and manufacturing concerns. The introduction of these vehicles, known for their innovation and efficiency, is expected to generate significant interest among Indian consumers who are increasingly looking towards sustainable transportation options.

In preparation for its market debut, Tesla has also imported various components necessary for supporting its vehicles, including Supercharger components and car accessories. The initial fleet of Model Y vehicles, totalling five, has already arrived in Mumbai, each valued at approximately 2.77 million rupees before taxes and import duties. India imposes substantial tariffs of over 70% on fully assembled imported cars priced under $40,000, impacting the final retail price of these EVs in the country. This high tariff structure poses a challenge, but Tesla's strategic pricing and marketing efforts aim to mitigate these costs for consumers. 

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Tesla's strategy in India focuses on appealing to the premium market segment, despite the fact that high-end vehicles comprise less than 2% of the total passenger vehicle sales in the nation. The EV sector itself accounts for just over 5% of new car sales, according to data from India's vehicle registration portal. Despite the challenges posed by the premium price segment, Tesla is moving forward with plans to expand its model range and establish a robust retail and service infrastructure. The company's commitment to innovation and quality is expected to resonate well with India's growing base of environmentally conscious consumers. 

The company has been actively leasing warehouse space in Karnataka and Gurugram to support its operational needs in India. It is also enhancing its workforce across various functions, including retail, charging infrastructure, and policy advocacy. Tesla's entry into India follows a pivotal meeting between CEO Elon Musk and Indian Prime Minister Narendra Modi earlier this year, which seems to have resolved some of the longstanding impediments to entry. This diplomatic engagement highlights the importance of strategic partnerships in facilitating business operations in new markets.

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While Tesla has yet to announce a new country head following the departure of Prashanth Menon, it continues to prepare its showrooms in Mumbai and New Delhi for opening. Situated in upscale business districts, these showrooms aim to attract affluent customers. Tesla's move into India represents a significant step in its global expansion strategy, particularly in emerging markets with potential for substantial growth in EV adoption.

Published on: Jun 20, 2025 9:29 PM IST
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