With intentions to launch its first stores in July 2025, Tesla Inc. is now formally preparing to enter the Indian automotive market. The electric vehicle pioneer will make its debut in Mumbai by mid-July, followed by a second showroom in New Delhi soon after, according to sources familiar with the situation. The company will officially enter the third-largest automotive market in the world with this highly anticipated step.

The arrival of at least five Model Y vehicles at the Mumbai port, which Bloomberg News confirmed via official import records, marks the beginning of the American EV giant's retail operations in India. The business has begun importing its premium Model Y rear-wheel drive SUVs from its Shanghai factory. These units were valued at over ₹21 lakh in import duties, totaling ₹27.69 lakh (around $31,988), demonstrating India's exorbitant taxes on fully assembled units.

Before taxes and insurance, the projected cost of the Model Y, which is widely regarded as the best-selling electric vehicle worldwide, will be over $56,000 in India. When U.S. tax credits reduce the price to $37,490, it is still far higher than the $44,990 that it costs in the United States. One of Tesla's biggest problems in India is persuading price-conscious customers to spend money on a high-end electric car, as demonstrated by this significant price disparity.

Although only little over 5% of new passenger car sales in India are represented by EVs, the premium market is still below 2%. Tesla faces a difficult environment in which it must strike a fine balance between price, product positioning, and consumer attractiveness.

Following a meeting between Prime Minister Narendra Modi and Tesla CEO Elon Musk earlier this year, Tesla's India plan has picked up steam. Prashanth Menon's departure from the firm has not yet resulted in the appointment of a new country head, but the company is actively recruiting for positions in retail, charging infrastructure, and public policy.

Tesla is also purchasing warehousing space in Karnataka and Gurugram in order to support its activities. Additionally, managers from multinational teams have been routinely visiting the luxury retail areas of Mumbai and New Delhi, where the initial showrooms are being built, to monitor the preparations.

In order to gain ground in a market that is becoming increasingly competitive yet price-sensitive, Tesla is counting on its worldwide brand appeal and high-end technology as it makes its much anticipated entrance into India.

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