Tesla has officially entered the Indian automotive market with the opening of its first showroom in Mumbai, showcasing its premium electric SUV, the Model Y. The move marks a significant step in the company’s long-anticipated expansion into the world’s third-largest car market.
The company is offering the Model Y rear-wheel drive at ₹6 million (approximately US$70,000), while the long-range rear-wheel drive variant is priced at ₹6.8 million (around US$79,000). These prices are considerably higher than in other key markets: in the United States, the Model Y starts at US$44,990; in China, at 263,500 yuan (US$36,700); and in Germany, at €45,970 (US$53,700).
Tesla’s Mumbai showroom, located within a gated office complex in the city’s financial district, was tightly secured during its unveiling. The Model Y, partially covered in black and grey drapes, was visible through the showroom’s glass façade, as police guarded the venue. Access to the premises was restricted, with minimal public presence and limited visibility into the space.
Elon Musk’s interest in the Indian market has been longstanding, driven by the country’s growing base of affluent consumers who have shown increasing demand for luxury goods, from real estate to high-end jewellery and automobiles. However, the Indian electric vehicle (EV) market remains in its early stages, with EVs accounting for just 4% of total car sales. The Indian government aims to increase this share to 30% by 2030, offering incentives such as tax concessions for foreign automakers willing to commit to local manufacturing.
These incentives, however, have thus far done little to sway Musk toward substantial domestic production commitments. Tesla’s entry arrives at a time when competition in India’s premium EV segment is intensifying, with established German brands such as BMW and Mercedes-Benz already present. Meanwhile, local players such as Tata Motors and Mahindra continue to dominate the mass-market EV segment.
The launch of Tesla’s Mumbai showroom also coincides with Vietnamese EV manufacturer VinFast’s pre-booking campaign for its VF7 and VF6 electric SUVs in India, signalling a broader push into one of the most promising, albeit infrastructure-challenged, automotive markets globally.
-Reuters
