Tesla in India: Here’s the Full Story Behind the Long Wait

The electric vehicle (EV) giant will inaugurate its first Indian “experience centre” showroom on July 15, 2025, at Mumbai’s Bandra Kurla Complex, with a second outlet expected in Delhi-NCR soon.

The Long Road to India

2016–2021: False Starts and Frustration

• 2016: Tesla began accepting pre-orders for the Model 3, fueling excitement across India.

• 2017: Elon Musk publicly blamed India’s 100% import duties as a major hurdle.

• 2021: Tesla registered its Indian entity in Bengaluru, sparking hope that operations would start soon. But the high import duties made local launch plans unsustainable.

2022–2023: Factory Plans and Stalemates

• Tesla considered building a $2 billion plant in Gujarat or Maharashtra but refused to commit to local manufacturing without import duty relief.

• Talks eventually stalled, even as Tesla hired staff in Mumbai and initiated homologation (road-worthiness) processes for several models.

2024 Policy Shift: Game Changer

In March 2024, India unveiled the SPMEPCI policy, dramatically reducing duties to 15% (from 100%) for EVs priced over $35,000—but only if:

• The company invests at least Rs 4,150 crore ($500 million) in India.

• Begins local production within 3 years.

• Hits 25% local value addition in 3 years, 50% in 5.

• Is limited to 8,000 CBU (Completely Built Unit) imports per year for 5 years.

What’s Launching Now?

• Model Y SUV will be Tesla’s first official product in India.

• Pre-duty price: Rs 27.7 lakh (~$33,000).

• After taxes and import duty, final prices may reach Rs 50+ lakh.

• Deliveries of the first batch are expected soon after launch.

India’s EV Dream Meets Tesla’s Global Strategy

Tesla’s India entry is timed with India’s push for clean energy adoption and its ambition to become a global EV hub. Tesla has yet to confirm if it will set up a local Gigafactory, but the policy requirements make it a likely outcome if demand takes off.

What’s Next?

• Retail Hiring: Tesla has onboarded store managers, sales & service staff, and autopilot operations specialists in Mumbai and Delhi.

• Delhi-NCR outlet will follow the Mumbai showroom.

• Industry insiders believe Model 3 and Model S may follow later depending on response.

Why It Matters

India is the world’s third-largest automobile market, and Tesla’s arrival is expected to boost EV adoption, pressure local manufacturers to innovate, and signal to other global automakers that India is ready for premium EVs—if policies are favorable.

Tesla’s debut in India is more than just a car launch—it’s a strategic milestone in the country’s EV journey, bridging years of policy impasse with potential for massive transformation. Buckle up, India’s EV race just shifted gears.