Tesla Finalizes Showroom Locations in Delhi and Mumbai, Prepares for India Entry

Tesla has officially selected locations for its first showrooms in India, with retail spaces finalized in New Delhi and Mumbai, marking a significant step toward its long-awaited entry into the Indian electric vehicle (EV) market.

According to sources cited by a news agency, the American EV giant has been actively scouting locations since late 2023, after previously pausing its India expansion plans in 2022 due to policy challenges.

The latest development highlights Tesla’s renewed commitment to establishing a foothold in the world’s third-largest automobile market.

Tesla’s Prime Showroom Locations in Delhi and Mumbai

New Delhi: Aerocity – A Prime Commercial Hub

In New Delhi, Tesla has secured a retail space in Aerocity, a prominent business and hospitality hub located near Indira Gandhi International Airport. Aerocity is home to global corporate offices, luxury hotels, and high-end retail outlets, making it a strategic choice for Tesla's first showroom in the capital city.

Mumbai: Bandra Kurla Complex (BKC) – The Financial Epicenter

Meanwhile, in Mumbai, Tesla has selected Bandra Kurla Complex (BKC), one of India’s most prestigious business districts. Situated close to Chhatrapati Shivaji Maharaj International Airport, BKC is a sought-after location for multinational corporations, premium retail stores, and financial institutions.

According to sources, both Tesla showrooms will span approximately 5,000 square feet. However, the company has not yet confirmed the official launch dates for these retail outlets.

Tesla’s India Strategy: Selling Imported EVs First

Tesla's initial phase in India will focus on selling imported electric vehicles rather than establishing local manufacturing facilities.

"These deals are for showrooms, not service centres," a source revealed, indicating that Tesla will directly manage its retail operations in the country.

The company is also actively recruiting in India, with job listings for 13 mid-level positions, including store managers and customer relationship managers.

Policy Challenges and Potential Tariff Reforms

Elon Musk has long voiced concerns about India’s high import duties on EVs, which currently stand at 100% on fully assembled vehicles. Tesla has been lobbying for tariff reductions but has encountered resistance from domestic automakers who fear increased competition in the rapidly growing EV market.

During a recent meeting between Indian Prime Minister Narendra Modi and U.S. President Donald Trump, trade policies and tariffs were discussed, potentially paving the way for a resolution that could facilitate Tesla’s market entry.

If the Indian government revises its EV tariff policies, Tesla could benefit from reduced duties in exchange for long-term investment commitments in the country.

Growing Competition in India’s Luxury EV Market

With the demand for luxury electric vehicles rising in India, Tesla’s entry is expected to heighten competition with premium EV brands such as:

• Mercedes-Benz: Offers the EQB and EQS electric models

• BMW: Competes with the iX and i4 models

• Hyundai: Expanding its premium EV lineup, including the Ioniq 5

Tesla’s direct-to-consumer retail strategy, coupled with its brand appeal and advanced technology, could position it as a strong contender in India’s premium EV segment.

Conclusion

Tesla’s decision to establish showrooms in New Delhi and Mumbai marks a pivotal moment in its India expansion strategy. By securing prime retail locations in Aerocity and Bandra Kurla Complex, the EV giant is demonstrating its commitment to tapping into the Indian market.

While Tesla’s initial operations will focus on selling imported EVs, the potential for local manufacturing remains on the horizon, contingent on favorable policy changes.

With increasing competition in India’s luxury EV segment, Tesla’s entry is set to reshape the market dynamics, offering consumers more choices and accelerating the adoption of electric mobility in the country. As the company finalizes its retail and operational plans, all eyes are on Tesla’s next move in India.