Tesla Opens Its First Showroom in India, Deliveries Begin Soon

Mumbai, India — Tesla will officially open its first showroom in India on Tuesday. The new facility is part of the electric vehicle manufacturer’s push to enter the country’s growing automotive market, which is the third largest in the world.

According to sources familiar with the matter, deliveries of Tesla vehicles are expected to kick off as early as late August. The Mumbai showroom will allow prospective buyers to explore pricing and different models, giving them a better understanding of their options.

Bloomberg reported last month that Tesla’s Model Y rear-wheel drive SUVs have already arrived in India from the company’s factory in China. The opening is significant as Tesla attempts to navigate challenges associated with high import tariffs which have impacted its entry strategy.

The Model Y is currently the world’s best-selling electric vehicle, and its performance in India will be closely watched. The company’s Chief Financial Officer, Vaibhav Taneja, acknowledged during a recent earnings call that tariffs have delayed their market entry.

Documents reviewed by Bloomberg indicated that five Model Y units were declared at nearly Rs 27.7 lakh ($32,270) each. With India’s 70% import tariff on fully assembled vehicles, the cars may be sold at a considerably higher price than in the U.S. where the same model starts at approximately $46,630.

Initially, the showroom will cater to VIPs and business partners, with general public access starting the following week. A second showroom is also set to open in New Delhi later this month.

Tesla’s timing is interesting, as it coincides with the rise of other competitors like Vietnam’s VinFast, which has just launched its premium SUVs in India. Despite the competitive landscape, Tesla remains committed to establishing its brand in India, despite facing hurdles with vehicle pricing.