From Delays to Drive-In: Tesla’s India Entry Journey Explained

Tesla has officially entered the Indian market, opening its first dealership—an Experience Centre—in Mumbai’s Bandra Kurla Complex on July 15, 2025. The launch marks a major milestone after years of back-and-forth, with the company finally taking its first retail step in one of the world’s fastest-growing EV markets.

1. Early Interest (2016–2021)

Tesla’s India story began in 2016, when Elon Musk announced pre-orders for the Model 3. But despite strong public interest, high import duties held the company back. In 2021, Tesla took a formal step by registering a local entity in Bengaluru—though the actual launch remained elusive.

2. Local production feasibility (2022–2023)

During 2022, Tesla explored factory setup plans and reportedly met with several state governments. Discussions pointed to a large investment, but Tesla wanted to test the market first with imports. The government, however, pushed for local production before any tax breaks. With no agreement reached, plans hit a roadblock

3. EV Policy tailormade for Tesla (2024)

In March 2024, the Indian government introduced a new EV policy, reducing import duties to 15% for EVs under $35,000—if the manufacturer sets up local production within three years. While the move encouraged Tesla to reconsider its India strategy, though it still held off on any factory announcement.

Also Read: Thinking of Buying Tesla Model Y in India? Deliveries May Be Closer Than You Think | Republic World

4. Silent preparation (Early to mid 2025)

Tesla began making quiet moves—leasing offices in Mumbai, expanding its team, and building an engineering hub in Pune. These steps signalled that the company was preparing for a serious market entry, even if manufacturing remained off the table for now.

5. Mumbai Showroom Launch (July 2025)

Tesla’s first showroom opened at Maker Maxity Mall in Mumbai’s Bandra Kurla Complex (BKC). The store showcases the Model Y, imported from its Shanghai plant. Deliveries are expected to start after September.
As per Tesla's official website, the Model Y is priced between Rs 59.89 lakh and Rs 67.89 lakh (ex-showroom), and offers a 500 km range, a top speed of 201 kmph, and 0–100 kmph acceleration in 5.9 seconds.

Future course of action

As per media reports, the next showroom is expected in Delhi, with expansion plans depending on customer interest and regulatory clarity. For now, Tesla is importing vehicles and monitoring the market before deciding on local manufacturing.

Summary 

Tesla’s India journey has been long, cautious, and strategic. From stalled talks to a mega launch in Mumbai, the company is clearly testing the waters before diving in deeper. Whether it commits to building locally will depend on how the market and policy evolve in the months ahead.