On July 15, 2025, the Tesla India launch marked a historic moment by opening its first showroom in India, located in Mumbai’s Bandra Kurla Complex (BKC). The launch included the official debut of the Model Y, Tesla’s popular mid-size SUV, which is now available for Indian buyers at a premium price starting at ₹70 lakh due to high import duties. The car will be available in two variants — the Long Range and Performance editions.
According to Al Jazeera, the elevated price is a result of India’s steep tariffs on imported electric vehicles (EVs), which can exceed 100%. Elon Musk had previously lobbied the Indian government to reduce duties for imported EVs, but was unable to secure favorable terms. The company has decided to proceed with a direct import model for now, while still exploring local manufacturing options in the future.
The Tesla India launch comes after years of speculation, negotiations, and delays. The Mumbai showroom will serve as a sales and experience center, with plans underway to expand to other metros including Delhi and Bengaluru. Test drives are expected to begin later this month, with early deliveries set for September.
Anand Mahindra Welcomes Elon Musk with a Friendly Challenge
The Tesla India launch sparked a range of reactions, one of the most notable being from Indian industrialist Anand Mahindra. In a post on X (formerly Twitter), Mahindra warmly welcomed Tesla’s arrival in India and addressed Elon Musk directly, saying, “See you on the roads!” He added that the Indian EV space is “vibrant, fiercely competitive, and full of opportunity,” signaling that Mahindra & Mahindra is ready for healthy competition.
Mahindra also took the opportunity to highlight the success of his company’s electric SUV, the XUV400, and noted that Indian consumers now have multiple options as the country accelerates its EV transition. His tweet has since gone viral, receiving praise for its confidence and sportsmanship.
Elon Musk has yet to respond publicly to Mahindra’s message, but in a previous statement he expressed enthusiasm about India’s potential to become a key market for Tesla, provided policy and infrastructure challenges are addressed.
Indian EV Market Reacts: Hype Meets Reality
While the Tesla India launch has generated significant buzz among Indian consumers and industry stakeholders, analysts remain cautious about the company’s ability to scale in the market. As Financial Express reported in its live coverage of the Mumbai showroom launch, potential buyers were enthusiastic but also concerned about the high costs and limited local support infrastructure.
India’s EV adoption is rising, but infrastructure such as charging stations and after-sales support remains a challenge. Tesla’s decision to import rather than assemble locally has sparked debate. While some view the move as a way to test the market before committing to large-scale investment, others worry it may limit affordability and mass adoption.
Still, industry experts see the Tesla India launch as a validation of India’s growing importance in the global EV landscape. The launch is expected to influence competitors, encourage innovation, and possibly push policymakers to revisit current EV import taxation structures.
Tesla’s much-anticipated launch in India is both a symbolic and strategic milestone. With its high-end Model Y, Elon Musk’s company aims to appeal to India’s luxury EV segment while gauging broader market readiness. Whether Tesla will become a major player or remain a niche premium brand in India will depend heavily on pricing strategies, local partnerships, and policy shifts in the months ahead.
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