Tesla India Launch 2025: 7 Key Highlights from a Game-Changing Entry

Khushal Luniya2 weeks ago

Tesla Company Open in India on July 2025.

Khushal Luniya

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Tesla in India 2025: 6 Promising Signs from a Historic Launch

Tesla formally entered India with a launch event on July 15, 2025. The ceremony opened Tesla’s first
“Experience Centre” showroom in Mumbai’s Bandra-Kurla Complex (BKC) – a 4,000 sq. ft. outlet at the Maker
Maxity Mall . Maharashtra’s Chief Minister Devendra Fadnavis and other officials attended,
welcoming Tesla to India. (A second showroom in the Delhi area is expected by late July .)

Vehicle Models and Pricing

At launch Tesla displayed its Model Y electric SUV (made in China). Both the rear-wheel-drive (RWD) base version and a long-range variant are offered. Local prices are steep by Indian standards: the Model Y RWD starts at about ₹60.0 lakh (≈$70,000) and the Long-Range at about ₹68.0 lakh . These figures (cashprice, no financing offered yet) include India’s high import duties, so they are roughly 30–40% above U.S. prices . For comparison, the Model Y base lists at $44,990 in the U.S. (after tax credits) and much lower prices in China/Europe . Tesla’s website and media reports confirm the ₹60–68 lakh range for India . No lower-end model was introduced: the Model 3 is on display but will arrive later in 2025 . (Shipments of a handful of Model Y cars had arrived days earlier, and Tesla will start taking customer orders in late July with first deliveries expected in August 2025 .)

Models: Tesla is initially selling the Model Y SUV (RWD and Long-Range). A right-hand-drive variant was homologated for India. The Model 3 is slated to follow later .
Prices: Starting ~₹59.9 lakh (US$69,757) for Model Y RWD; ~₹67.9 lakh for Long-Range . (Roughly ~$70k and ~$78k, respectively.) High import duties (≈70%) account for this premium.

Showroom, Service and Operations

Tesla’s initial retail infrastructure centers on Mumbai and Delhi. The Mumbai Experience Centre (Maker Maxity Mall, BKC) is open. A New Delhi showroom (NCR) is slated to open by end-July 2025 . To support sales and maintenance, Tesla India has leased a service center near the Mumbai showroom: a 24,500-sq-ft garage in Kurla West . Tesla also maintains an engineering hub in Pune and a registered office in Bengaluru . For logistics and inventory, the company has leased warehouse/office space (e.g. in Karnataka and Gurugram) and is hiring local staff . Overall, Tesla has filled many of its advertised India roles (store managers, sales and service executives, charging team staff, etc.) . The company will use a direct sales model (no dealers), as in other markets.

Showrooms (Experience Centres): Mumbai (BKC, Maker Maxity Mall) opened July 15; Delhi-NCR
location expected soon . More major cities will follow as demand dictates
Service Facilities: A 24,500-sq-ft Tesla service center is set up in Kurla West (Mumbai), close to the
showroom . Additional service outlets are planned in other metros.
Offices & Warehousing: Tesla has a Pune engineering office and a Bengaluru office . It also
leased warehouse space in Karnataka and expansion space in Gurugram to support parts, charging
equipment, etc. .
Staffing: Dozens of hires have been made for sales, service, and charging infrastructure teams

Charging Infrastructure Strategy

Tesla plans to deploy its own charging network in India. The company has confirmed it will install its advanced V4 Superchargers before customer deliveries begin . Specifically, Tesla will launch four Supercharger stations in the Delhi region (each with 4 plugs, totalling 16) , and will install 16 destination chargers (slower chargers for places like shopping malls) across India . These chargers will support Model Y owners in Mumbai, Delhi, Bangalore and eventually other urban areas.

India’s government is also expanding charging broadly. Under the PM’s Electric Drive Revolution plan, India aims to nearly double its public EV chargers from ~32,500 today to about 72,300 by March 2026 . The central government (Heavy Industries ministry) is working with the highways, airports and ports authorities to place EV charging (and even battery-swap) points on key routes . In short, Tesla is building its own Supercharger network in Indian cities while India’s broader EV infrastructure drive (with billions of rupees in support) is greatly expanding public chargers nationwide .

Government Collaboration and Incentives

India’s policymakers have actively courted Tesla with favorable EV policies. In 2024-25 India introduced an EV scheme (often called the SPMEPCI or PLI-EV scheme) that cuts import duties to 15% (from ~70%) for high-end EVs if the manufacturer commits to invest roughly ₹4,150 crore (US$500 million) in local production, with phased local-content requirements . Under this plan, foreign EV makers can import a limited number of cars at low duty by pledging a manufacturing plant in India. Tesla lobbied for exactly such relief and the government moved to grant it. For example, officials confirmed that automakers that invest ~$500m to build EV plants here will pay just 15% basic duty on imports instead of 70% .

High-level talks have cemented this interest. Prime Minister Narendra Modi met Elon Musk during Musk’s U.S. visit in Feb 2025 and spoke again by phone in April 2025 about technology cooperation . Maharashtra’s CM Fadnavis (at the launch) explicitly welcomed Tesla, noting India’s “very good policies” on EV charging, promotion and manufacturing incentives . In short, the Indian government is offering policy incentives (duty relief, subsidies and R&D support) to encourage Tesla’s entry and eventual local production. (For now Tesla is taking advantage of the duty concession by importing cars; any future plant would aim to utilize these incentives.)

Local Manufacturing and “Gigafactory” Plans

Tesla has not committed to local production yet. Company representatives have repeatedly stated (and a government minister confirmed) that Tesla is focused on imports “at the moment” . As of July 2025, all vehicles are coming in fully-built. Nevertheless, discussion of a future factory has been ongoing for years. In 2024 Musk had planned to visit India and was expected to announce a $2–3 billion investment (possibly including a factory) before canceling that trip . Reports early in 2025 said Tesla is scouting sites in Maharashtra for an EV plant, and even talking with Tata Motors about a collaboration .

India’s EV policy effectively conditions the biggest benefits on local manufacturing: to keep the 15% import duty, companies must begin production here within three years . Local content must reach 25–50% over time. These rules mean that if Tesla wants full incentives and lower tariffs, it will eventually need a plant (some have called it a “Gigafactory”).

But Tesla is proceeding cautiously. It has emphasized that its India launch is for gauging demand and building the brand . Any decision on a factory (and its location) remains under negotiation with state and central governments. Observers note that until production is assured, Tesla will pay higher import taxes – a trade-off it is willing to make while global sales slow in other markets .

Market Reception and Consumer Interest

Initial public reaction was a mix of enthusiasm and skepticism. Media reported long queues of curious onlookers at the Mumbai showroom from early opening hours, despite heavy monsoon rains . Tesla’s entry has generated a lot of buzz, and the company says it will start taking customer orders in late July with deliveries from August . On social media and online forums, however, many Indians questioned the pricing and practicality. Memes and posts pointed out that at ~₹60 lakh, the Model Y costs “nearly 2× compared to other countries” .

Drivers jokingly wondered about using Autopilot in heavy traffic and on flooded roads . (One viral tweet quipped that Tesla is “ready for the Indian monsoon” after seeing a waterlogged road!) Others noted India’s EV penetration is still under 5% of car sales, with luxury EVs only ~1% , suggesting Tesla’s market will remain niche. In sum, affluent early adopters have shown strong interest in visiting the store, but widespread uptake depends on price and infrastructure.