Tesla finally enters India — nine years after Elon Musk first teased its debut

Tesla has officially launched its operations in India, unveiling its inaugural showroom after nearly a decade of speculation and delays. This long-anticipated entry into one of the largest automotive markets in the world comes nearly nine years after CEO Elon Musk first hinted at the possibility in April 2016. The new showroom, branded as an "Experience Center," is strategically located within the Maker Maxity Mall in the bustling Bandra Kurla Complex of Mumbai. Spanning 4,000 square feet, the center showcases the Model Y in both rear-wheel drive (RWD) and long-range RWD variants, all imported from Tesla's Shanghai facility. The prices are set at ₹59,89,000 (around $68,000) for the Model Y RWD and ₹67,89,000 (approximately $79,000) for the long-range version. Additionally, customers can opt for a full self-driving package for an extra ₹600,000 (about $7,000). Starting today, Indian consumers can place orders for the Model Y in major cities like Delhi, Gurugram, and Mumbai, with a non-refundable deposit of ₹22,220 (approximately $260). Deliveries for the RWD variant are anticipated to commence in the third quarter of this year, while the long-range variant is expected to be available by the fourth quarter. To support this launch, Tesla has pledged to install four charging stations in Mumbai and Delhi, which will include both Supercharger and destination charging options. Furthermore, a second showroom is expected to open in Delhi later this month as part of Tesla's expansion strategy in India. Plans are also underway for Tesla to import vehicles from its Berlin facility once the India-EU free trade agreement is finalized. Currently, India ranks as the fourth-largest automotive market globally, following China, the U.S., and Japan, with an annual production of nearly 6 million vehicles. However, the country's electric vehicle (EV) market remains relatively small, largely dominated by two-wheelers. The Indian government aims for electric vehicles to account for 30% of total automotive sales by 2030. Elon Musk initially announced Tesla's intentions to introduce the Model 3 to the Indian market in 2016, even accepting $1,000 deposits from prospective customers, which were later refunded due to delays. Discussions regarding Tesla's plans have taken place between Musk and Indian Prime Minister Narendra Modi, as the Indian government has encouraged Tesla to establish a manufacturing facility in the country. Despite the Indian government's initiatives, including a notable increase in component sourcing from India to $1.9 billion this year, Musk has expressed hesitation about launching a local factory. Tesla has begun hiring in India, yet the company lacks a permanent head in the country following the resignation of Prashanth Menon, who was overseeing operations. In 2024, the Indian government reduced import taxes on EVs, facilitating Tesla's entry into the market at a lower cost. Although the company has previously raised concerns regarding the steep 100% import tariffs on vehicles, Tesla's CFO Vaibhav Taneja described the Indian market as "very hot" during an earnings call. As Tesla embarks on this new chapter, it faces increasing competition from local players and rivals in other significant markets, including China and Europe. Recent data indicates a 16% year-over-year increase in Tesla's EV sales in China, but overall global sales have seen a decline of 13% in the second quarter, raising questions about the company's performance amidst growing competition.