Tesla marks India entry with first showroom in Mumbai

Tesla unveiled its first showroom in India on Tuesday, marking its entry into the world's most populous country, as Elon Musk's electric vehicle company seeks new customers amid sagging sales in the United States and Europe.

Tesla's Regional Director for South Asia, Isabel Fan poses next to the 'Model Y' vehicle during the inauguration of India’s first Tesla showroom, in Mumbai on July 15, 2025.

Tesla has for years signalled its interest in India but held back due to the country's steep tariffs on electric vehicles. Musk, who once described India as having "more promise than any large country", has also criticised its import duties, calling them among the "highest in the world".

New Delhi has offered to cut import taxes on electric vehicles for global automakers only if they commit to investing hundreds of millions of dollars and make cars locally. Tesla has yet to announce plans to set up a plant in India.

Tesla's Model Y cars are priced at nearly $70,000 as Elon Musk's electric vehicle maker looks to tap new markets and offset slowing sales where it's already well established. The rear-wheel drive vehicle has a starting price of about 5.99 million rupees ($69,757), while the longer-range variant is priced at 6.8 million rupees, Tesla's website showed.

An advertisement for the Model Y at the Tesla Inc. store at Bandra Kurla Complex (BKC) in Mumbai, India, on Tuesday, July 15, 2025.

Tesla's India debut comes at a critical time for the company, which is seeing demand wane for its cars in countries around the world. The recent slump in Tesla's sales partly reflects the highly competitive nature of the EV market, which the company once dominated but now also features BYD and other low-cost Chinese players.