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Tesla’s Big India Debut: Just a Showroom, No Factory (Yet)
Tesla takes its first step into India’s EV market with an experience centre in Mumbai, leaving manufacturing off the table.

By Indrani Priyadarshini

on July 11, 2025

Elon Musk’s Tesla is finally making its much-awaited entry into the Indian market with the launch of its first-ever showroom. According to a Reuters report, the American EV giant will open an "experience centre" on July 15 in Mumbai, marking the company’s debut physical presence in the country.

Bandra Kurla Complex to House Tesla

Reports suggest that Tesla’s flagship experience centre will be located at the bustling Bandra Kurla Complex (BKC), one of Mumbai's most prominent business districts. This showroom represents a critical first step in Tesla’s India journey, which has been under discussion for years.

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Leasing Deals & First Car Arrivals from China

In March, Tesla finalised a lease agreement to establish its first Indian outlet in Mumbai, marking the beginning of its retail operations. The company has also been ramping up hiring efforts and scouting potential locations in both Mumbai and New Delhi as part of its market entry strategy. Meanwhile, Bloomberg reports that Tesla has already imported five Model Y vehicles from its Shanghai factory. These cars, valued at 2.77 million rupees (approximately $31,988) each, faced import duties exceeding 2.1 million rupees due to India’s steep tariffs on fully built imports, which stand at 70 percent.

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Manufacturing Still Off the Table

Despite this major milestone, Tesla’s India plans appear to be limited to retail for now. HD Kumaraswamy, Minister for Heavy Industries, GOI, recently stated in an interview that Tesla currently has no interest in manufacturing vehicles or parts in India. According to the minister, the company’s India focus remains solely on establishing and expanding showrooms.

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A Long-Awaited Entry With Cautious Steps

Tesla’s India entry has been a topic of speculation for years, with the company previously lobbying for reduced import taxes to make its vehicles more affordable in the market. While the opening of the Mumbai experience centre marks a significant development, it seems Tesla is still taking cautious steps, testing the waters of one of the world’s fastest-growing EV markets before committing to local manufacturing.