
Tesla is finally making its way onto Indian roads! The electric vehicle (EV) giant, led by Elon Musk, has signed its first five-year lease deal in India for a showroom, marking a significant milestone in its journey into the Indian market. The first showroom is being set up in Mumbai’s Bandra Kurla Complex (BKC), one of India’s most premium commercial hubs.

Tesla’s First Showroom in India: A Major Step Forward
India Today and Business Today TV visited the BKC Maker Maxity location, where Tesla’s showroom will soon be operational. This high-profile area is also home to India’s first Apple Store, reflecting Tesla’s premium branding strategy. Given the scarcity of space in BKC, Tesla has also secured additional car parking to accommodate potential customers and test drives.
According to a Reuters report, Tesla’s five-year lease agreement for the BKC showroom comes with:
- A monthly rent of ₹32 lakh
- A 5% annual rent increase
- A total expenditure of approximately ₹22 crore over five years
Beyond Mumbai, Tesla is also in the final stages of securing a showroom in Delhi’s Aerocity, near the international airport, further cementing its presence in India’s key metro cities.
Why Has Tesla Taken So Long to Enter India?
Despite India’s growing EV market, Tesla’s entry has been delayed due to:
- High Import Duties: India imposes steep import tariffs exceeding 100% on fully imported cars, making Tesla’s vehicles significantly expensive.
- Government’s Local Manufacturing Push: The Indian government has insisted on local manufacturing instead of just selling imported cars, leading to long-drawn negotiations.
- Regulatory & Infrastructure Challenges: The lack of EV-friendly infrastructure and stringent regulations have further slowed down Tesla’s expansion.

Tesla’s Strategy for the Indian Market
For now, Tesla will import cars from its Germany Gigafactory instead of manufacturing in India. The company is testing the waters by opening showrooms before committing to a “Make in India” plan. However, reports suggest that if demand meets expectations, Tesla may set up local production facilities.
Pricing & Market Competition
Even with recent reductions in import duties, Tesla’s most affordable model, the Tesla Model 3, is expected to cost upwards of ₹35 lakh. This puts it in competition with luxury EV brands rather than mass-market players.
Tesla will face competition from established EV manufacturers in India, including:
- Hyundai (Kona Electric, Ioniq 5)
- Maruti Suzuki (upcoming EV models)
- Mahindra (XUV400 EV)
- Tata Motors (Nexon EV, Tiago EV)
What’s Next for Tesla in India?
Tesla’s India expansion is seen as a test run before making a deeper commitment. The success of its Mumbai and Delhi showrooms will determine whether Tesla will set up a gigafactory in India to produce cars locally. While India’s EV market is growing rapidly, Tesla’s premium pricing strategy may pose challenges in a price-sensitive market.
Final Thoughts
Tesla’s entry into India is a game-changer for the country’s EV revolution. However, whether it will dominate the Indian market depends on its ability to balance affordability, infrastructure, and government policies. With Elon Musk’s keen interest and the Indian government’s push for green mobility, the coming years will be crucial in shaping Tesla’s fate in India.
Stay tuned for more updates on Tesla’s India expansion!