Tesla has officially entered the Indian auto market, launching its first showroom in Mumbai on Tuesday. The move comes amid record sales declines, growing global competition, and controversy surrounding CEO Elon Musk’s political activity.
The company listed its Model Y SUV at ₹61 lakh ($71,000), significantly more expensive than the same vehicle in the U.S., where it starts around $45,000 before a $7,500 EV tax credit. High import tariffs in India, which can double vehicle prices, remain a major barrier to expansion.
Tesla CFO Vaibhav Taneja acknowledged India’s market potential but noted tensions over tariffs. India ranks third globally in vehicle sales, behind China and the U.S.
President Trump announced that India may reduce tariffs as part of broader trade negotiations, but no formal deal has been confirmed. Meanwhile, Tesla faces fierce competition from Chinese EV makers like BYD and internal leadership churn as key executives exit.
