The Tesla Model Y is to be the first car sold, but high import duties double the cost compared to the US. The electric vehicle giant has officially entered the Indian market, with the launch of its very first showroom in Mumbai on Tuesday, July 15. The store is located at the upscale Maker Maxity mall in the Bandra Kurla Complex (BKC), one of the city’s most prominent business hubs. Alongside the retail outlet, Tesla has also set up a dedicated service centre and warehouse approximately six kilometres from the showroom, underscoring its long-term commitment to the Indian market.

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Model Y to Lead Tesla’s India Lineup

The first vehicle Tesla will offer Indian customers is the Model Y, a mid-range luxury electric SUV that has gained significant popularity in international markets. The car will be available in two variants and is being imported directly from Tesla’s Gigafactory in Shanghai, China.

Why It Costs Nearly Double in India

While the Model Y starts at $37,490 (around ₹32.2 lakh) for the long-range RWD version in the United States, Indian buyers may have to shell out nearly double that amount. The steep price hike is likely due to the 70 percent import duty levied on completely built units (CBUs) brought into India. However, industry sources suggest that the price disparity could narrow in the future if Tesla initiates local assembly or manufacturing operations, which would significantly reduce import-related costs.

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Delhi Next on the Map? 

While Tesla’s Mumbai store marks a major milestone, there’s already speculation about the company’s next move. Sources indicate that the next showroom could open in the national capital, Delhi, although no official timeline has been confirmed yet. As Tesla enters one of the world’s fastest-growing EV markets, all eyes are on how the company plans to navigate pricing, policy, and infrastructure challenges in India.