Tesla Opens First Showroom to Launch India Venture
Tesla Launches First Showroom in India
Opening in Mumbai
On Tuesday, Elon Musk’s electric vehicle company unveiled its inaugural showroom in India, entering the world’s most populous country. The store opened to a select group of visitors after an inauguration by Maharashtra state chief minister Devendra Fadnavis.
Current Offerings
- Model Y is currently available in India.
- A cheaper variant is expected to roll out later this quarter.
Strategic Milestone
Isabel Fan, Tesla’s senior regional director, said, “This marks a huge milestone for Tesla globally.” She added that charging stations will soon be set up in both Mumbai and New Delhi.
Public Access
The showroom will open to the general public on Wednesday. In heavy Mumbai rains, curious onlookers and Tesla admirers braved the weather to catch a glimpse of the cars on display.
India’s EV Market Context
For years, Tesla has signalled its interest in India but has hesitated due to steep tariffs on electric vehicles. Musk has called India’s import duties “among the highest in the world.”
New Delhi has offered to cut import taxes on EVs for global automakers only if they commit to investing hundreds of millions of dollars and make cars locally. Tesla has yet to announce plans to set up a plant in India, so it will likely sell cars imported from China.
Pricing & Demand
- Model Y starts at about $70,000 in India, far higher than the U.S. price of $37,490 after a $7,500 federal tax credit.
- Demand for Tesla’s cars is waning globally, partly due to highly competitive EV market featuring BYD and other low‑cost Chinese players.
Expert Outlook
Soumen Mandal, senior analyst at Counterpoint, said the high price tag will likely place Tesla out of the price range of most Indian customers, competing only against luxury carmakers.
“We don’t expect Tesla to play the volume game right away given the price tag,” Mandal told AFP. “We project 500‑700 units sold in initial months and then that to taper off to 200‑300 per month.”
Trade Negotiations
India is currently negotiating a trade deal with the United States, which may reduce tariffs on automobiles. In February, Musk met one‑on‑one with Indian Prime Minister Narendra Modi in Washington.
