Tesla finally opens its first showroom in India amid high tariffs
- Tesla opened its first showroom in Mumbai, India, on July 14, 2025.
- The entry follows years of negotiation and policy issues regarding electric vehicle tariffs.
- The launch signifies a step towards enhancing India's electric vehicle market and clean energy goals.
On July 14, 2025, Tesla made its long-awaited entry into the Indian market by opening its first showroom in Mumbai. This debut marks the beginning of Tesla's operations in one of the world's largest automotive markets, where the electric vehicle sector has been gradually developing. The showroom launch follows years of obstacles including import tariffs and policy negotiations that delayed Tesla's entry. The Model Y SUV is featured prominently in this launch, with a starting price of approximately $68,000, heavily influenced by a 70% tariff on electric vehicle imports in India, alongside a 30% luxury tax. Tesla's price positioning suggests it will primarily target the premium segment of the market rather than compete with local budget-friendly automakers like Tata Motors and Mahindra & Mahindra. This entry could stimulate the domestic electric vehicle sector, which currently holds only about 2% market share, as the Indian government aims to increase this to 30% by 2030. The Indian government's efforts to attract Tesla highlight their desire to boost clean energy initiatives nationwide and the strategic significance of introducing innovative technology into the market. Alongside the showroom, Tesla plans to establish experience centers, service hubs, and charging stations, indicating a commitment to establishing a robust operational presence in India. The company's presence may also lead to increased interest in electric vehicles among Indian consumers, paving the way for a transformative shift in the automotive landscape of the region.