On 15 July 2025, Anand Mahindra—the prominent chairman of Mahindra Group—posted a warm and upbeat message on X (formerly Twitter), marking Tesla’s milestone arrival in India. His full message read:
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“Welcome to India, @elonmusk and @Tesla. One of the world’s largest EV opportunities just got more exciting. Competition drives innovation, and there’s plenty of road ahead. Looking forward to seeing you at the charging station.”
He also shared a screenshot from a 2017 tweet exchange with Elon Musk. Back then, Mahindra had playfully invited Musk to explore the Indian EV market:
“Time you got out here, Elon. You don’t want to leave the whole market to Mahindra, do you? The more the merrier and greener.” Musk had replied simply, “Good point.”
This message didn’t just offer congratulations—it signaled a readiness to compete and innovate in India’s EV ecosystem, with Mahindra even quipping about meeting “at the charging station.”
Tesla’s Launch in India: Showroom & Model Y Details
Showroom Opening
- Tesla officially opened its first showroom, christened the Tesla Experience Centre, on 15 July 2025 at Maker Maxity Mall, located in Mumbai’s Bandra-Kurla Complex (BKC) .
- This marks Tesla’s first foray into India, setting the stage for further expansion—Delhi is expected to host a second showroom soon .
First Model: Model Y
Tesla launched two variants of its Model Y SUV in India:
- Rear-Wheel Drive (RWD) – ex-showroom ~₹60.1 lakh (~₹6.01 M)
- Long Range RWD – ex-showroom ~₹67.8 lakh (~₹6.78 M)
These prices, after including import duties and freight, nearly double U.S./China market price equivalents.
Pricing Breakdown & Tariff Impact
Tesla’s Indian launch is built upon imported, fully built units (CBUs) from the Shanghai Gigafactory. Key pricing considerations:
- Import duties can exceed 70–100%, pushing the Model Y price to around $70,000 (~₹6.8 M) .
- In contrast, the average new car in India sells for under $20,000, making Tesla a high-end luxury offering ().
- India did lower EV import tariffs to 15% for manufacturers who invest at least $500 million and commit to local manufacturing within three years—but Tesla has not yet opted for local production .
- As such, Tesla’s steep pricing means the Model Y will directly rival premium luxury brands like BMW and Mercedes-Benz—not mainstream EVs from Tata or Mahindra .
Infrastructure & Order Journey
- At launch, pre-orders are available online with a nominal deposit (~₹22,220), and payment using UPI and cards is enabled ().
- Deliveries of the standard RWD Model Y are expected in Q3 2025, with the Long Range version following in Q4 ().
- Tesla also plans to deploy Superchargers and Destination Chargers, with initial installations expected in Mumbai and Delhi ().
Strategic Rationale & Market Context
- Though the EV segment in India comprised just ~4.4% of overall auto sales as of June 2025, it’s growing rapidly .
- India sold around 111,000 EVs in the 12 months leading to March 2025, compared to total car sales of 4.3 million .
- Tata Motors already leads with ~53% market share, followed by Mahindra and MG ().
- Despite the small base, India’s EV adoption is accelerating, and analysts project strong growth: if EVs become 10% of the market by 2030 (approx. 500,000 vehicles/year), Tesla capturing 10% would yield 50,000 annual sales .
- For now, Tesla is positioning itself as a luxury brand, aiming at affluent urban consumers
Challenges & Roadblocks
High Price Point
Imported pricing places Model Y at nearly ₹67–68 lakh, putting it squarely in luxury territory .
No Local Manufacturing
Tesla has no immediate plans to make EVs in India, foregoing import tariff relief and extending its reliance on fully built imports ().
EV Infrastructure
While Tesla is investing in Supercharger networks, India still lacks a nationwide fast-charging grid, which could limit wider adoption ().
Regulatory & Road Standards
Complex Indian road conditions and lack of regulatory framework pose challenges for Tesla’s Full Self-Driving (FSD) features, which are sold as premium add-ons (~₹6 lakh) but not yet activated locally .
Political & Industrial Reactions
- The Maharashtra government has welcomed Tesla’s presence, signaling support for clean mobility and urging continued investment in R&D .
- Senior figures have described Tesla’s entry as a boost to foreign investment in India and have indicated discussions with Elon Musk on EV policy .
- As Mahindra noted, competition fosters innovation—and this move may spur domestic OEMs to accelerate their EV programs.
What’s Next?
- Delhi Showroom: Tesla is expected to open its second showroom in New Delhi soon .
- Supercharger Network: Targeted deployment in Mumbai and Delhi to support first-wave buyers ().
- Local manufacturing discussions: Ongoing talks around tariff relief tied to investments in manufacturing – Tesla has yet to commit .
- Starlink launch: Elon Musk’s satellite internet service may accompany Tesla’s arrival, pending regulatory approvals .
- Strategic EV Outlook: By establishing brand presence and infrastructure early, Tesla is laying groundwork for when costs drop and local production begins
Conclusion: A Landmark Moment
- Anand Mahindra’s tweet.”—a blend of welcome and challenge—underscores domestic confidence in India’s evolving EV landscape .
- Tesla’s Mumbai showroom unlocks Indian consumer exposure to top-tier EV tech, starting with the Model Y, despite its luxury pricing.
- High costs, import dependency, and infrastructure gaps are significant hurdles, but Tesla is taking a strategic foothold in anticipation of future success.
- Whether Tesla scales operations with local manufacturing, leverages EV mandates, or catalyzes innovation among domestic competitors, its entry marks a pivotal shift—signalling serious momentum in India’s EV adoption.