According to Bloomberg, sources familiar with the matter have revealed that Tesla's first showroom in India is scheduled to open in July, marking the company's formal entry into the world's third-largest automobile market. Amid declining sales in Europe and China, Tesla is actively seeking new avenues for growth.
The sources indicated that the first batch of Tesla vehicles to be sold in India will be the rear-wheel-drive version of the Model Y, manufactured at Tesla's Shanghai factory, which has already arrived in the country. The first showroom is expected to open in Mumbai by mid-July, followed by another location in New Delhi. Documents viewed by Bloomberg show that Tesla has also imported Supercharger components, vehicle parts, merchandise, and spare parts from the U.S., China, and the Netherlands. A Tesla spokesperson did not immediately respond to foreign media inquiries regarding the showroom or related preparations.
Furthermore, Tesla executives from other countries have been traveling weekly to oversee operations in the Mumbai and New Delhi showrooms. These outlets are strategically located in upscale commercial districts to attract affluent consumers.
According to documents obtained by Bloomberg, five Tesla Model Y vehicles have arrived in Mumbai from the Shanghai factory, with a declared value of 2.77 million rupees (approximately USD 31,988). They are subject to more than 2.1 million rupees in import duties. India imposes a 70% import tariff plus additional levies on electric vehicles priced under USD 40,000. Excluding insurance, the pre-tax price of the Model Y in India exceeds USD 56,000. However, insiders suggest Tesla will finalize pricing based on its profit margins and market positioning. For comparison, the Model Y is priced at USD 44,990 in the U.S., and drops to USD 37,490 after tax incentives.
This high price tag may prove to be a major hurdle for Tesla in India, where value-conscious consumers dominate the market. Electric vehicles account for just over 5% of new car sales in the country, while premium vehicles make up less than 2%.
Bloomberg also reports that Tesla's introduction of the Model Y is only a preliminary move. The company plans to expand its presence in India with additional models. Sources say Tesla is leasing warehouses in the southern state of Karnataka and expanding its warehousing footprint in Gurugram, on the outskirts of New Delhi.
