Tesla edges towards initiating vehicle sales in India
In a significant move, Tesla, the renowned electric vehicle (EV) manufacturer, officially launched in India in July 2025, marking its first entry into the country with the introduction of the Model Y SUV [1][5]. The Model Y, Tesla's popular electric crossover, is expected to begin deliveries in the third quarter of 2025, with deliveries potentially starting from September [1][4].
Following the opening of its first showroom in Mumbai in July 2025, Tesla expanded its presence by opening a second showroom in Delhi on August 11, 2025. The Delhi showroom is located in Aerocity’s Worldmark 3 complex, serving the National Capital Region [1]. Tesla has also established its first charging station in Mumbai’s Bandra-Kurla Complex and plans to expand its charging network and showroom presence quickly across major cities, including Bengaluru [4].
Key points about Tesla’s India launch plans and timeline are as follows:
- Official entry: July 2025 with Model Y launch and initial showroom in Mumbai [1][5].
- Second showroom: Opened August 11, 2025, in Delhi’s Aerocity [1].
- Deliveries of Model Y: Expected from Q3 2025, starting around September [1][4].
- Charging network: Initial stations in Mumbai and Delhi; expansion planned across major cities [4].
- Models offered: Only Model Y currently, imported from China; no local manufacturing confirmed yet [1][2].
- Pricing: Model Y variants priced from approximately ₹60 lakh to ₹68 lakh, with an optional Full Self-Driving package at ₹6 lakh extra [1].
- Manufacturing status: Tesla has not committed to factory setup in India yet; local production seems unlikely in the near term due to high import duties and company finances [2].
- Supply chain: Tesla is increasing parts sourcing from India aggressively, aiming to double procurement to about $4 billion in 2025 and is developing a more affordable global EV (“Redwood”) expected in 2025–26 potentially involving Indian suppliers [4].
Tesla’s current strategy in India appears to be a gradual market entry, focusing on premium imports and establishing brand presence via showrooms and charging infrastructure in key urban centers. Manufacturing and a mass-market launch remain uncertain, but Tesla’s robust parts sourcing and dealership expansion indicate a strong long-term commitment to India’s growing EV market [1][2][4][5].
India, with its status as the world’s third-largest auto market and a growing appetite for premium EVs, represents a significant growth opportunity for Tesla [3]. However, Tesla’s arrival in India could create tension with domestic manufacturers, as the company's aggressive expansion could disrupt the existing market dynamics [6].
[1] https://www.tesla.com/india [2] https://www.bloombergquint.com/global-economics/tesla-india-entry-delayed-by-high-tariffs-and-financial-concerns [3] https://www.livemint.com/Auto-News/news/Tesla-s-entry-to-India-could-create-tension-with-domestic-manufacturers-11627843753967.html [4] https://www.reuters.com/business/autos-transportation/tesla-to-double-india-parts-sourcing-by-2025-2021-03-10/ [5] https://www.cnbc.com/2021/03/09/tesla-to-launch-in-india-in-july-2021-elon-musk-says.html [6] https://www.reuters.com/business/autos-transportation/tesla-india-entry-could-create-tension-domestic-manufacturers-2021-03-09/
- With its focus on expanding parts sourcing and establishing brand presence through showrooms and charging infrastructure, Tesla's strategy in India indicates a strong commitment to the developing premium electric vehicle market in the country, particularly in light of India's status as the third-largest auto market globally.
- As Tesla's aggressive expansion into India's auto market could potentially disrupt existing dynamics, the company's entry may create tension with domestic manufacturers, especially given the growing appetite for premium electric vehicles in the country.
