Elon Musk’s Tesla to debut in India next week, first experience centre at Mumbai’s BKC

After years of speculation and stalled negotiations, Elon Musk’s Tesla is officially set to enter the Indian market, with its first showroom slated to open in Mumbai’s upscale Bandra Kurla Complex (BKC) on July 15.

A long-awaited launch

Reports suggest Tesla has started sending select invitations referring to the event as the “launch of Tesla in India.” This marks the company’s first formal step into one of the world’s fastest-growing automobile markets. While Tesla has not issued a public statement, sources familiar with the matter indicated that the electric vehicle (EV) giant intends to showcase its flagship Model Y SUV at the launch.

This move comes after a protracted period of deliberations between Tesla and Indian policymakers. Last year, CEO Elon Musk attributed the delay in entering the Indian market to overwhelming commitments within the company, PTI reported.

Mumbai to host first experience centre

The company has already established a physical presence in Mumbai by leasing over 24,000 square feet of warehouse space at Lodha Logistics Park for a five-year term. Now, it’s gearing up to unveil a Tesla Experience Centre at BKC, a prominent business hub, where customers will likely get a first look at its EVs and accessories.

Bloomberg reported that at least five Tesla Model Y vehicles, manufactured in Shanghai, have already landed in Mumbai. These units will likely be featured prominently at the launch and used for early test drives and demonstrations.

Model Y: Star of the show

Tesla plans to begin its Indian journey with the Model Y, its global bestseller. This all-electric SUV is available in two main versions internationally: the Long Range Rear-Wheel Drive (RWD) and the Long Range All-Wheel Drive (AWD).

The RWD version boasts an EPA-estimated range of 574 km and reaches 0–100 kmph in 5.4 seconds, while the AWD version, powered by dual motors, has a slightly shorter range of 527 km but accelerates to 100 kmph in just 4.6 seconds, Financial Express reported.

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In the US, the Model Y is priced starting at $44,990 (approximately Rs 38 lakh). However, Bloomberg data suggests that in India, each imported Model Y has been valued at around Rs27.7 lakh ($31,988), but the 70 per cent import duty applicable to EVs under $40,000 may push the post-duty cost above Rs48 lakh ($56,000), not including local taxes and insurance.

India’s EV policy

Tesla’s India entry comes amid a cautious regulatory environment. Union Minister Piyush Goyal had earlier made it clear that India would not modify its EV policies to suit the business model of any one company. Instead, the country intends to attract a wide range of global electric vehicle manufacturers by maintaining a uniform policy framework, PTI reported.

In fact, India recently revised its customs duty structure to make luxury EVs more accessible. In her Union Budget speech, Finance Minister Nirmala Sitharaman announced a reduction in import duties for luxury vehicles priced above $40,000, down from 125 per cent to 70 per cent. The government also removed customs duty on lithium-ion batteries to ease production costs and encourage local EV manufacturing.

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Minister of Heavy Industries HD Kumaraswamy recently confirmed that Tesla is currently not exploring car manufacturing in India. Instead, its initial focus appears to be on retail and brand presence through experience centres and direct imports.

Global pressure and local implications

Tesla’s India entry also carries global trade implications. US President Donald Trump had voiced concern over Tesla potentially building a factory in India to bypass US tariffs, calling it “unfair” to American interests. While no such factory plans have been announced, Tesla’s India debut through imports has reignited the debate around global tariff parity and market access.

As Tesla prepares for its July 15 launch, industry watchers are closely observing whether this marks a testing phase or a longer-term commitment. For now, Tesla’s India story begins with a sleek showroom in Mumbai, a fleet of imported Model Ys and a cautious but hopeful market watching every move.