Tesla’s first showroom at the Bandra-Kurla Complex in Mumbai, India on July 15, 2025. Indranil Aditya/NurPhoto via Getty Images After nearly a decade of anticipation and negotiation, Tesla has officially entered India—though not without a steep price tag for Indian consumers. The Elon Musk-led automaker opened its first showroom in Mumbai yesterday (July 15), marking its long-awaited debut in the country. Tesla is now accepting orders for its Model Y SUV, which starts at more than 5.9 million rupees ($69,000), a sharp increase from the vehicle’s $45,000 base price in the U.S. Sign Up For Our Daily Newsletter Sign Up See all of our newsletters This price difference is largely due to India’s high import tariffs, which range from 70 percent to 110 percent on automobiles. Musk has repeatedly criticized these levies, citing them as a major barrier to Tesla’s entry into India. Even so, the company is moving forward at last, eyeing India as a promising growth opportunity amid flagging sales in the U.S., Europe and China. Tesla also plans to build charging stations across Mumbai, according to Isabelle Fan, the company’s director for Southeast Asia. In an interview with CNBC-TV18, Fan said another showroom is set to open in Delhi by the end of July, and the company is focused on hiring locally. //History// Musk’s interest in India dates back to 2016, when Tesla began accepting $1,000 deposits from Indian customers to reserve the Model 3. Those orders never materialized. In 2021, the company registered a subsidiary in India. But again, no vehicles were sold. Over the years, Musk has held several meetings with Indian officials, including Prime Minister Narendra Modi, but Tesla’s plans repeatedly stalled over the country’s import policies. In 2022, the company officially paused its India rollout, citing the tariff burden as a dealbreaker. That deadlock may finally be easing. A renewed meeting between Modi and Musk earlier this year appears to have revived negotiations. In the months since, Tesla has begun recruiting staff and scouting showroom locations across major cities. The company currently lists about 35 open positions in India. Tesla faces plummeting sales in formerly strong markets Tesla’s India launch comes at a turbulent time for the company, as it grapples with slowing growth in some of its most important markets. In the U.S., Tesla deliveries declined in the most recent April-June quarter compared to last year. In Europe, sales have dropped for five consecutive months, with May figures showing a 28 percent year-over-year decline. In China, Tesla’s revenue has also been cooling amid intensifying competition from domestic automakers like BYD. India, the world’s third-largest auto market by sales, now presents a fresh growth opportunity. Electric cars accounted for only 2.5 percent of all vehicles sold in 2024. The Indian government aims to boost that figure to 30 percent by 2030 through incentives and regulatory support. “We’ve been working on getting into India. India is a very hot market,” said Vaibhav Taneja, Tesla’s chief financial officer, during Tesla’s most recent quarterly earnings call in April. Still, he acknowledged that India’s tariff structure continues to be a major hurdle. While the government is reportedly considering lowering import duties as part of broader trade negotiations with the U.S., no formal changes have been announced. For now, Indian buyers will need to pay a premium. The long-range Model Y costs around 6.7 million rupees ($79,000), and opting for Tesla’s Full Self-Driving package adds another 600,000 rupees ($7,000).