Tesla To Finally Enter India in July

After months of rumours and expectation, the US EV behemoth Tesla is finally set to make its entry into the Indian market. But the ride so far has been far from smooth. There have been tensions between the Indian government and the company—largely over taxation issues—that have kept the entry process bumpy. 

Elon Musk has repeatedly emphasized the potential of India as a growth market, but has expressed frustration with the high import tariffs and stringent "Make in India" requirements. Though he admits to the long-term potential, Musk confesses that establishing a Tesla in India with predominantly local content is a distant dream for the time being more so since Mahindra and Tata have launched some pretty stiff rivals in the past few months.

Tesla Finalizes Entry In July 2025 

Playing safe with the Indian launch, Tesla has imported the initial consignment of Model Y rear-wheel-drive SUVs through the CBU (Completely Built Unit) channel from its Shanghai Gigafactory. Why the Model Y, you may wonder? It's easy — it's Tesla's global top seller and the world's fastest-selling EV. 

The company is placing its bet on a winner to break the Indian market. The first Tesla showroom will open in Mumbai by mid-July, and another in Delhi shortly thereafter, which heralds the start of Tesla's long-awaited run on Indian roads.

Tesla's conservative foray into India incurs a substantial price. The initial five Model Y models were imported at Rs 27.70 lakh each but incurred a heavy import duty of more than Rs 21 lakh per vehicle. With India's 70% import tariff on fully assembled EVs costing less than Rs 40 lakh, the Model Y will likely sell for more than Rs 48 lakh when it formally goes on sale. 

Import records also show Tesla importing supercharger parts, accessories, merchandise, and spare parts from the U.S., China, and the Netherlands, all of the EV brand's core markets, indicating an overarching plan to build both sales and service infrastructure in the near term.

Tesla is making a bold statement with its India entry, choosing none other than Mumbai’s upscale BKC (Bandra-Kurla Complex) financial district for its first showroom. This isn’t just a casual move—it signals just how serious Tesla is about tapping into the Indian market. As per property registration records, the EV behemoth has leased a 4,000 sq ft area at Rs 23.38 crore for five years, including two exclusive car parking spaces. With an astronomical Rs 881 per sq ft rent, the deal has created a new national record for auto showroom rentals, the most expensive in India so far.

Tesla’s Co-Working Office Space in Mumbai (Managerial Space)

In addition to locking down prime real estate for its flagship showroom, Tesla has also secured a managed office space near Mumbai’s Bandra Kurla Complex, close to Phoenix Marketcity, to support its sales operations. The company has taken up 30 seats on lease at a monthly rent of Rs 3 lakh. The lease agreement spans one year, with a three-month lock-in period, reflecting Tesla’s pragmatic approach—laying a strong groundwork while maintaining operational flexibility as it navigates the Indian market.

On the after-sales front, Tesla isn’t holding back either. The company has leased a massive 24,565 sq ft warehouse at Lodha Logistics Park in Mumbai’s Kurla area, clearly gearing up for service and workshop operations. The space consists of two ground-level units with a total carpet area of more than 18,000 sq ft and a rentable area of over 24,000 sq ft. 

The lease agreement, one of the most expensive for an automotive workshop, costs more than Rs 24.38 crore for five years. At a launch monthly rent of Rs 37.53 lakh with an annual escalation of 5%, Tesla is spending large to create a robust service infrastructure in India.

With the EV war growing hot in India, it's quite obvious that Tesla has its eyes set on a piece of the pie. The firm will pilot the waters in Mumbai before landing in Delhi, before moving to other Tier-1 cities in the country. It's a strategic move in a market that's quickly adopting electric mobility. Still, only time will reveal how Tesla performs, particularly with international rivals such as BYD already making impressive inroads and gaining traction among Indian consumers.