Tesla is getting closer to launching in India, as it has finalised a deal for its first showroom in Mumbai. This is an important step for the company as it prepares to enter the rapidly growing Indian market. According to a recent report by TOI, Tesla has secured a 4,000 sq ft commercial space in Mumbai’s prime Bandra-Kurla Complex (BKC).
The flagship showroom will showcase Tesla’s cutting-edge electric vehicles. The lease for this premium location is reportedly one of the highest in the area, with Tesla committing to a monthly rental of approximately Rs 35 lakh (Rs 900 per sq ft). The lease agreement spans five years, and Tesla is already planning to open a second showroom in Delhi’s Aerocity complex.
Key developments leading to Tesla’s India entry
This move follows a series of significant steps taken by Tesla, including a meeting between CEO Elon Musk and Prime Minister Narendra Modi in Washington and the recent listing of 13 job openings in India. These developments indicate that Tesla is actively expanding its retail presence in the country, with a potential launch expected in the coming months.
Tesla’s entry and trade relations between India and the US
Tesla’s entry into India has been in the pipeline for years. Initially, the company aimed for a 2022 launch but postponed its plans. Now, with renewed momentum, Tesla’s launch appears imminent. The timing aligns with increasing clarity on the India-U.S. Bilateral Trade Agreement, which was announced after Prime Minister Modi’s meeting with former U.S. President Donald Trump.
However, challenges remain. India imposes a 110% duty on imported vehicles, a policy that has been a key concern for Tesla. In a recent interview, Trump expressed frustration over high tariffs, which he believes hinder U.S. companies like Tesla from selling in India. Elon Musk has also pushed for lower tariffs, prompting the Indian government to draft a new policy that could facilitate Tesla’s entry.
Tesla vehicle pricing in India
Tesla’s models will be positioned as premium offerings in India, with prices starting at approximately Rs 21 lakh ($25,000). Below are the estimated prices for Tesla’s popular models in India:
Tesla Cybertruck – Rs 50.70 lakh
Tesla Model 2 – Rs 45 lakh
Tesla Model 3 – Rs 60 lakh
Tesla Model Y – Rs 70 lakh
Tesla Model S – Rs 1.50 crore
Tesla Model X – Rs 2 crore
These prices are subject to change. However, the Indian government is expected to introduce incentives and tax benefits to promote EV adoption, potentially making Tesla’s vehicles more accessible to Indian consumers.
With the opening of its first showroom in Mumbai and plans for further expansion, Tesla is poised to make a significant impact on India’s electric vehicle market in the near future.
