Elon Musk’s Tesla is finally making its debut in India with the launch of its first showroom. According to reports, the electric vehicle giant will open an “experience centre” in Mumbai on July 15.

Mumbai's BKC to Host Tesla’s First India Outlet

Tesla’s first physical location in the country will be set up in Mumbai’s Bandra Kurla Complex (BKC). This store will mark the company’s formal entry into the Indian market.

Tesla Ships Model Y Cars to India

As reported by Bloomberg, Tesla has already sent five Model Y vehicles to Mumbai from its factory in Shanghai, China. These vehicles were imported at a declared price of ₹2.77 million ($31,988) each. However, Tesla had to pay over ₹2.1 million in import duties per car due to India’s 70% tax on fully built imported cars.

Years of Talks Focused on Import Duties

Tesla’s arrival in India comes after years of negotiation. During this period, the company actively lobbied the Indian government to reduce import taxes on electric vehicles. But even with its operations now starting, Tesla is reportedly still hesitant to manufacture parts locally.

Tesla Not Interested in Manufacturing in India

Last month, Union Minister for Heavy Industries HD Kumaraswamy spoke about Tesla’s India plans. In a statement to ANI, he said, "Tesla, we are not actually expected from them, they are only to start showrooms. They are not interested in manufacturing in India."

This indicates that for now, Tesla’s focus is on sales and display, not on setting up local production units.

What Tesla’s Entry Means for India

Tesla’s launch in Mumbai is a significant step for the company and for India’s growing electric vehicle (EV) market. However, the high import duties and lack of local manufacturing suggest that Tesla’s expansion could remain limited for now.