Tesla Enters India With Model Y: M&M, Tata Motors, Maruti Slip Ahead Of Mumbai Launch

Elon Musk’s EV giant is days away from opening its first showroom in Mumbai, with five Model Y SUVs already landed and priced above ₹2.7 million before duties.

Tesla is setting up shop in India, and the ripples are already being felt. Reports suggest that the electric vehicle maker is set to open their first showroom on July 15 at Mumbai’s Bandra Kurla Complex. 

Shares of homegrown automakers slipped on Friday, as investors weighed the potential impact of Tesla’s upcoming India debut on the domestic electric vehicle market.

Mahindra & Mahindra fell over 2%, while Tata Motors was down 1%.

Maruti Suzuki, Bajaj Auto, Hero Motocorp and TVS Motor also dipped between 0.5% to 2%. 

Meanwhile, Bloomberg reported that Tesla has already brought in its first batch of Model Y SUVs from its Shanghai factory.

The Model Y is Tesla’s best-selling model globally, setting the stage for a formal launch in India just days away.

Five units have already arrived in Mumbai, declared at ₹2.77 million ($31,988) and subject to import duties exceeding ₹2.1 million, consistent with India’s 70% tariff on fully built EVs priced below $40,000.

The final sticker price is expected to be upwards of $56,000 before taxes and insurance, though Tesla is reportedly still finalizing its pricing strategy.

Tesla’s first “experience center” will be in Mumbai, Reuters reported. It will be followed by a second location in New Delhi.

The company has also imported Supercharger hardware, car accessories, and spare parts from the U.S., China, and the Netherlands, signaling preparations for full-fledged retail operations.

The launch follows years of negotiations between Tesla and Indian policymakers over import tariffs and local manufacturing. 

Progress accelerated following a meeting between Elon Musk and Indian Prime Minister Narendra Modi in early 2025.

As Tesla prepares for its India debut with the Model Y, the SUV posted a 9.1% year-on-year sales rise in China for June, rebounding after earlier declines. 

However, first-half 2025 sales were still down 17.5% year-on-year. The Model 3 saw an 8.4% decline in sales in June.

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