Tesla to commence deliveries in India by August with new showrooms in Mumbai, Delhi

Tesla Inc. is set to open its inaugural showroom in India next Tuesday, marking a significant milestone for the electric vehicle maker as it seeks to tap into the potential demand within the world’s third-largest automotive market. Sources told Bloomberg News that the company plans to begin deliveries as early as next month (August), using this entry to counteract slowing sales in other markets.

The Mumbai showroom’s opening will formally introduce Tesla into the Indian market. This move will provide prospective buyers with access to detailed pricing information, available variants, and trim options, according to individuals who requested anonymity due to the private nature of the information. Documents reviewed by Bloomberg News corroborate this development.

Commencement of deliveries is anticipated from late August, as per sources familiar with Tesla’s strategy. Customers in India will be able to configure and order their Tesla vehicles starting next week, further indicating Tesla’s commitment to establishing a strong presence in the region.

Preliminary reports from Bloomberg News indicated that preparations for the Mumbai showroom had been underway since mid-July, and that the first batch of Model Y rear-wheel drive SUVs had already arrived from Tesla’s factory in China. These developments underscore the automaker’s logistical readiness for its Indian market entry.

In addition to the Mumbai site, Tesla is also set to open a second showroom in New Delhi towards the end of July, according to sources. This expansion reflects the company’s broader ambition to solidify its footprint across key Indian metropolitan areas. The New Delhi showroom will further enhance Tesla’s visibility and accessibility in the capital city, offering a strategic advantage in reaching a wider customer base.

Tesla’s entry into India comes at a critical juncture, coinciding with a global dip in sales during the second quarter. Chief Financial Officer Vaibhav Taneja previously mentioned that hefty import tariffs had been a significant factor in delaying Tesla’s entry into the region. These tariffs have posed challenges, but the company’s decision to proceed highlights its confidence in the Indian market’s potential.

The initial week of the Mumbai showroom’s operations will be dedicated to VIPs and business partners, with general public access scheduled for the subsequent week, further stated by sources familiar with the rollout plans. This phased approach aims to build anticipation and ensure a smooth operational start.

The Model Y, noted as the world’s top-selling electric vehicle, will serve as a gauge for Indian consumers’ acceptance amid high import duties. The five Model Y units, each declared at approximately 2.77 million rupees, will sell at a premium due to India’s 70% import tariff on fully-built imported cars under $40,000, alongside additional surcharges. This pricing strategy will test the market’s willingness to invest in premium electric vehicles.