Nine Years Later, Tesla Charges into India – But Will Buyers Bite?

Nine years after Elon Musk first teased Tesla’s arrival in India, the electric vehicle (EV) giant has finally charged into the market with its first Mumbai showroom. The launch, on July 15, 2025, marks a long-delayed—and expensive—debut for the company in one of the world’s largest automotive markets. But the question lingers: will Tesla’s premium-priced Model Y find enough Indian buyers to justify the wait?

A High-Stakes Debut

Located in Mumbai’s upscale Bandra Kurla Complex, Tesla’s 4,000-square-foot “Experience Center” showcases the facelifted Model Y SUV imported from its Shanghai plant. The rear-wheel-drive (RWD) variant is priced at ₹59.87 lakh (~$69,770), while the long-range version costs ₹67.89 lakh (~$79,000)—both significantly pricier than in the U.S. or China due to India’s steep 70% import duties on CBU (completely built unit) EVs. Customers can book the Model Y with a ₹22,220 non-refundable deposit, but deliveries won’t begin until September 2025.

Adding to the cost, Tesla’s Full Self-Driving (FSD) feature—currently limited by Indian regulations—comes at a steep ₹6 lakh (~$7,000) premium. The company is also rolling out charging infrastructure, with plans for Supercharger stations in Mumbai and Delhi ahead of deliveries. A second showroom in Delhi is expected soon, with Tesla adopting a cautious phased expansion.

Nine Years of False Starts

Tesla’s Indian saga began in 2016, when Musk hinted at launching the Model 3 and even collected deposits from hopeful buyers. But regulatory hurdles, high tariffs, and repeated government pushes for local manufacturing stalled progress. Negotiations thawed only in 2024, when India slashed EV import taxes for companies investing at least $500 million in local production—a move that opened the door for Tesla’s CBU imports.

Despite Musk’s meetings with Prime Minister Narendra Modi, Tesla has yet to commit to local manufacturing. In May 2025, Heavy Industries Minister H.D. Kumaraswamy confirmed Tesla “is not interested in starting manufacturing in India.” Instead, the company appears to be testing the waters with imported models before making further investments—a strategy that could limit broader adoption.

Can Tesla Compete in a Price-Sensitive Market?

India’s EV market remains nascent, dominated by affordable two-wheelers, with passenger EVs accounting for just 1%-2% of total sales. Tesla’s premium pricing puts it at a disadvantage against local players like Tata Motors and Chinese rivals like BYD, which already sells competitively priced EVs in India.

Experts acknowledge Tesla’s brand appeal but caution that success hinges on affordability. “Without local production, Tesla’s cars will remain a niche luxury purchase,” says an automotive analyst familiar with the market. The company’s discussions with the Indian government suggest manufacturing plans are still in flux—leaving buyers stuck with high import-driven costs for now.

Bigger Than Cars: Musk’s India Play

Tesla’s launch coincides with Starlink’s internet service rollout in India, signaling Musk’s broader ambitions in the region. But Tesla faces headwinds beyond India: declining sales in the U.S., Europe, and a shrinking lead in China. With global Q2 deliveries down 13% year-over-year, India’s market becomes a critical—if uncertain—pivot.

Will Tesla’s bet pay off? Much depends on how quickly it transitions from imports to local production and whether Indian EV infrastructure matures fast enough to assuage buyer concerns. Until then, the Model Y remains a shiny, expensive outlier in a market still warming up to EVs. As one customer outside the Mumbai showroom quipped, “Nice car. But can I charge it on my way to Goa?”

For Tesla, that’s the billion-rupee question.