After nearly a decade of anticipation, Tesla has officially entered the Indian market by inaugurating its first showroom in Mumbai’s Bandra-Kurla Complex. This 6,000-square-foot Experience Center showcases the Model Y in both rear-wheel drive (RWD) and long-range RWD versions, imported from Tesla’s Shanghai facility. The Model Y RWD is priced at approximately ₹59,89,000 (around $68,000), while the long-range RWD variant costs ₹67,89,000 (about $79,000). Additionally, Tesla offers a full self-driving add-on for ₹600,000 (approximately $7,000). ([techcrunch.com](https://techcrunch.com/2025/07/14/tesla-finally-enters-india-nine-years-after-elon-musk-first-teased-its-debut/?utm_source=openai))
Despite this significant milestone, the enthusiasm among Tesla’s early Indian supporters appears to have waned. Vishal Gondal, CEO of fitness-tech startup GOQii and an early Tesla enthusiast, pre-booked a Model 3 in April 2016, shortly after reservations opened. However, after visiting the new showroom, Gondal expressed feeling a little bit underwhelmed and has no immediate plans to purchase a Tesla. His disillusionment stems partly from the prolonged wait and the challenges he faced in obtaining a refund for his $1,000 reservation fee, which required multiple follow-ups.
Similarly, Varun Krishnan, founder of tech blog FoneArena and another early Tesla backer, voiced frustration over the extended delay. He noted the irony that Starlink, another venture by Elon Musk, received approval in India in a shorter timeframe than Tesla’s vehicles. Krishnan’s sentiments reflect a broader sense of disappointment among early adopters who had high hopes for Tesla’s timely entry into the Indian market.
Tesla’s journey into India has been fraught with challenges. The company initially accepted $1,000 deposits from Indian customers in 2016 for the Model 3, only to refund them years later due to uncertainties surrounding the launch. This prolonged period of ambiguity has tested the patience of many loyalists. ([hindustantimes.com](https://www.hindustantimes.com/trending/indian-ceo-slams-elon-musk-s-tesla-for-returning-1-000-reservation-fee-paid-in-2017-101749612759631.html?utm_source=openai))
The Indian automotive market presents unique hurdles for Tesla. The country’s import tariffs on fully assembled electric vehicles are among the highest globally, ranging from 60% to 100%. These steep duties have historically deterred Tesla from entering the market, as they significantly inflate the final price of imported vehicles. While recent policy changes have reduced import taxes to 15% for electric vehicles priced below $35,000, this concession requires manufacturers to commit to building a local factory within three years—a commitment Tesla has yet to make. ([indiatoday.in](https://www.indiatoday.in/amp/business/story/tesla-model-y-in-india-elon-musk-key-challenges-what-next-for-ev-maker-2756518-2025-07-16?utm_source=openai))
Moreover, India’s automotive landscape is predominantly value-driven. The average selling price of cars in the country hovers around $14,000, making Tesla’s offerings, which start at approximately $68,000, accessible only to a niche segment of affluent consumers. In 2024, luxury cars accounted for just about 1% of total vehicle sales in India, with brands like Mercedes-Benz, BMW, and Audi dominating this small market share. ([finshots.in](https://finshots.in/archive/teslas-here-but-is-india-still-interested/?utm_source=openai))
Competition in the Indian electric vehicle (EV) sector is intensifying. Domestic manufacturers such as Tata Motors and Mahindra & Mahindra have been proactive in introducing affordable EV models tailored to the Indian consumer. Tata Motors, for instance, held more than two-thirds of the EV market share in 2023. Additionally, Chinese automaker BYD has made inroads into the Indian market, launching models like the Atto 3 SUV and the Seal sedan. However, geopolitical tensions and stringent foreign investment regulations have posed challenges for Chinese companies, potentially offering Tesla a temporary advantage. ([techxplore.com](https://techxplore.com/news/2024-08-indians-money-undelivered-teslas-drastically.html?utm_source=openai))
Tesla’s global position has also evolved. Once the undisputed leader in the EV market, Tesla has faced stiff competition from companies like BYD, which overtook Tesla in global sales in 2024. In the first half of 2025, Tesla sold approximately 720,000 vehicles, while BYD sold over 2 million. This shift underscores the need for Tesla to adapt its strategies to maintain its competitive edge. ([finshots.in](https://finshots.in/archive/teslas-here-but-is-india-still-interested/?utm_source=openai))
For Tesla to establish a significant presence in India, local manufacturing appears to be a crucial step. Setting up production facilities within the country would not only help mitigate the impact of high import duties but also align with the Indian government’s push for local manufacturing under the Make in India initiative. Furthermore, local production could enable Tesla to offer models at more competitive price points, making them accessible to a broader segment of Indian consumers. ([indiatoday.in](https://www.indiatoday.in/amp/business/story/tesla-model-y-in-india-elon-musk-key-challenges-what-next-for-ev-maker-2756518-2025-07-16?utm_source=openai))
In conclusion, while Tesla’s official entry into India marks a significant milestone, the company faces a complex landscape characterized by high import tariffs, a price-sensitive consumer base, and increasing competition from both domestic and international players. Rebuilding trust among early supporters and adapting to the unique dynamics of the Indian market will be essential for Tesla’s success in the region.
