KATHMANDU: Tesla is set to formally enter the Indian automobile market by opening its first showrooms in July, starting with Mumbai and followed by New Delhi.
According to Bloomberg, the company has imported Model Y rear-wheel drive electric SUVs from its Shanghai plant for sale in India. With import tariffs and markups, the final retail price is expected to exceed $56,000.
EVs represent just over 5% of India’s passenger vehicle market and premium EVs occupy less than 2%.
The move marks Tesla’s first direct presence in the world’s third-largest auto market after years of delays due to import tax negotiations and manufacturing requirements. Tesla’s decision to proceed follows a meeting between CEO Elon Musk and Indian Prime Minister Narendra Modi in the United States earlier this year.
The imported models include vehicles as well as Supercharger components, accessories and spare parts shipped from the US, China and the Netherlands.
Its price in India is significantly higher due to duties and distribution costs. EVs represent just over 5% of India’s passenger vehicle market and premium EVs occupy less than 2%.
Despite the high price, Tesla is expected to position its brand in India’s luxury segment. The Mumbai and New Delhi showrooms are located in high-end commercial districts to attract affluent customers.
Tesla is hiring more employees across its policy, charging infrastructure and retail teams to support its expanding operations.
Further expansion, including the introduction of additional models, is anticipated following the initial launch phase.
