Tesla to Inaugurate its First Store in Mumbai Tomorrow

Tesla Inc. will launch its first showroom and experience centre in Mumbai’s Bandra Kurla Complex (BKC) tomorrow. The electric vehicle (EV) manufacturer is entering a market known for price sensitivity and policy complexity.

Spread across 4,000 square feet, the Mumbai showroom, as per the company, comes after months of regulatory engagement and real estate negotiations. Tesla has signed a five-year lease for the space at an estimated value of ₹23.4 crore. 

On July 11, Tesla India unveiled a teaser image on its official X handle, offering a glimpse into the brand’s retail presence in India.

The Model Y rear-wheel drive SUVs, manufactured at Tesla’s Shanghai factory, have arrived in Mumbai, each valued at ₹27.7 lakh (approximately $31,988). Due to India's 70% import duty on fully-built vehicles under $40,000, plus surcharges, the final sale price is projected to exceed $56,000 before taxes and insurance.

Tesla’s entry marks a pivotal moment for India’s premium EV market but its current approach (import-only, premium pricing) will limit scale. Meanwhile, local players like Tata already dominate volume, while Hyundai and BYD compete in the premium space with partial localisation and global tech. 

The company has so far invested nearly $1 million in merchandise, infrastructure, and product shipments for its initial launch, according to import tracking data. While Tesla’s entry aligns with the Indian government’s EV ambitions, the automaker has opted for a retail-first strategy rather than committing to local manufacturing or assembly, at least in the near term.

The Indian EV market currently accounts for just over 5% of total passenger vehicle sales, with mass-market models priced between ₹10 lakh and ₹20 lakh driving adoption. Premium EVs account for less than 2% of the total EV mix, as per the media reports.