Tesla’s First Showroom: For the Indian market, Tesla is a brand with high aspirations in the electric transportation space. On July 15, 2025, the electric vehicle manufacturer will formally debut in the Indian market after a protracted trip. It is the outcome of market preparedness, policy changes, and strategic agreements. According to rumors, the corporation plans to introduce the Tesla Model Y to the Indian market. However, how did the business get to this point of its historic arrival in India? Let’s examine it in more detail.

Tesla’s Early Struggles in India: 2016-2021
2016: Tesla showed significant interest in the market by beginning to take pre-orders for the Model 3. The EV manufacturer, very recently, in 2025, issued refunds for reservations made for the Model 3 in 2016.

2017: To sell the Tesla brand in India, Elon Musk cites 100% import tariffs on premium cars as one of the tax-based obstacles.

2021: In January 2021, Tesla India Motors and Energy Private Limited, based in Bengaluru, is registered as an entity in India. Nitin Gadkari, the Union Minister for Road Transport and Highways, declared that Tesla would begin operations in India through the CBU in early 2021 rather than using a local manufacturing line.

$2 Billion Factory in India: 2022-2023

2022: In January, Elon Musk criticized India’s high import duties, saying they made it difficult for Tesla to enter the Indian market. While rigorously testing the Model 3, the company also started the homologation process for four of its models in India.

2023: Tesla began hiring locally in Mumbai for 13 positions, establishing its physical presence in the country. The company also explored plans to set up a $2 billion factory in either Gujarat or Maharashtra. However, by mid-2023, talks broke down due to India’s high tariffs and its insistence on local manufacturing, terms Tesla wasn’t ready to accept.

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SPMEPCI Policy Opens Doors:

India announced the SPMEPCI policy in March 2024, slashing import duties on EV CBUs priced above $35,000 to 15%, provided manufacturers invest at least ₹4,150 crore ($500 million) and begin local production within three years. The policy also requires manufacturers to achieve 25% domestic value addition within three years and 50% within five. The government has capped annual imports at 8,000 units for five years. In early 2025, Tesla ramped up hiring for its retail operations in Delhi and Mumbai, bringing on board shop managers, sales staff, service executives, and autopilot operators.

Midway through 2025: Registration periods open and policy details are finalized; several international OEMs, except Tesla, openly express interest in the program.

July 2025: Launch In Mumbai

Tesla will open its first “experience centre” showroom at Mumbai’s Bandra Kurla Complex, followed shortly by a second facility in Delhi-NCR. The company reportedly plans to begin its India retail operations with the launch of the Model Y SUV. The car’s documented price, before import duties, stands at approximately ₹27.7 lakh. However, import taxes of around ₹21 lakh per vehicle could push the final cost above ₹50 lakh. Tesla is expected to begin deliveries of the first batch of Model Y cars in India soon.

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