Tesla to Debut in India on July 15 with First Experience Centre in Mumbai’s BKC

Tesla, the world’s leading electric vehicle manufacturer, is officially entering the Indian market on July 15, 2025. The company will inaugurate its first experience centre in Mumbai, located in the upscale Bandra Kurla Complex (BKC). This launch marks Tesla’s first physical presence in India, a milestone that comes after years of anticipation, discussions, and policy negotiations.

Initial Focus on Imported Model Y Units

To kick off its India operations, Tesla is expected to begin with the retail sales of imported Model Y units. According to Bloomberg News, five Model Y vehicles have already landed in Mumbai, shipped directly from Tesla’s Shanghai Gigafactory. These units are currently being processed and assessed by Indian customs.

Import Duties and Tariffs on Model Y Shipments

The imported Tesla Model Y vehicles were declared at ₹2.77 million ($31,988) each, attracting over ₹2.1 million in import duties. These charges are in line with India’s steep 70% import tariff on fully-built electric cars priced below $40,000, plus applicable surcharges.

The final retail price in India is expected to exceed $56,000 before taxes and insurance. This is significantly higher than the U.S. base price of $44,990 (or $37,490 after EV tax credits) for the same model. Tesla is expected to factor in its profit margins and strategic market positioning before announcing the final sticker price for Indian consumers.

Tesla’s Past Efforts to Enter the Indian Market

Tesla’s journey into India has been in the making for several years. CEO Elon Musk has repeatedly expressed interest in tapping into India’s growing EV market but had earlier pushed for reduced import duties to make the vehicles more competitively priced. However, policy roadblocks and lack of infrastructure led to multiple delays.

Despite these setbacks, Tesla has remained committed to launching in India and has been actively negotiating with government officials for better market entry terms.

Policy Changes Boost Tesla’s India Launch Plans

India’s recent policy changes have created a more favorable environment for global EV manufacturers like Tesla. In her Budget 2025 speech, Finance Minister Nirmala Sitharaman announced several major incentives for the automotive sector, particularly for electric vehicles.

One of the key changes was the reduction of tariffs on luxury vehicles priced above $40,000. The earlier 125% duty has been slashed to 70%, significantly lowering the cost of high-end EV imports. This shift aligns with the government’s strategy to attract premium automakers and offer consumers a broader selection of eco-friendly vehicles.

Customs Duty on Lithium-Ion Batteries Removed

Another major boost for the EV ecosystem in India came with the government’s decision to eliminate basic customs duties on lithium-ion batteries, a core component of electric vehicles. This move is aimed at reducing the overall cost of EV production, encouraging domestic manufacturing, and making electric vehicles more affordable in the long term.

Why Tesla’s India Launch Matters

Tesla’s entry into India could act as a catalyst for EV adoption, particularly in the premium segment. India is already making strides in electric mobility through startups and homegrown manufacturers, but the arrival of a global EV leader like Tesla is expected to raise awareness, accelerate infrastructure development, and bring competitive innovation to the industry.

The opening of Tesla’s first experience centre in Mumbai’s BKC, one of the most premium business districts in India, reflects the company’s intent to position itself as a luxury EV brand in the market.

Conclusion: A New Chapter in India’s EV Journey

As Tesla prepares to officially launch in India, all eyes are on the company’s strategy, pricing, and response from Indian consumers. With improved trade policies, reduced duties, and increasing demand for clean energy vehicles, India is set to become an important market for Tesla’s international expansion.

The coming weeks will provide further clarity on Tesla’s product lineup, pricing strategy, and possible plans for local manufacturing or assembly in India.