Tesla Inc, led by billionaire Elon Musk, is set to open its first showroom in India on July 15 in Mumbai, signalling the EV major’s formal retail entry into the country’s auto sector. This development comes as the company grapples with sluggish sales in China and Europe, and is reportedly pivoting towards emerging markets to drive volumes. According to a report by Reuters, the Mumbai showroom will mark Tesla’s debut in India’s automotive space — the world’s third-largest car market. The first consignment includes five Model Y rear-wheel drive SUVs imported from the company’s Shanghai facility. These units are priced at Rs 2.77 million (approx. $31,988) each, but with India’s import duties, the final cost exceeds Rs 4.9 million due to a 70 per cent tariff and additional levies. “Tesla has shown no intention of building a factory in India,” Heavy Industries Minister Kumara Swamy confirmed last month, adding that the company's engagement with India’s electric vehicle manufacturing schemes remains minimal. No ‘Make in India’ for Musk’s TeslaDespite India’s push for local EV manufacturing under its PLI (Production Linked Incentive) scheme and FAME India programme, Tesla appears uninterested in building production infrastructure in the country. Tesla did attend one initial stakeholder meeting hosted by the government to promote EV manufacturing, but it skipped the following two sessions, according to officials. The company has instead opted for a retail-first strategy via imported vehicles. US President Donald Trump has publicly opposed any move by Tesla to manufacture in India, reportedly calling it “very unfair” — a sentiment that adds a geopolitical undertone to the EV maker’s cautious India approach. Tesla’s India Footprint So FarMumbai Showroom Launch: July 15, 2025 First Models Arrived: 5 Model Y units from Shanghai Second Showroom Planned: Delhi-NCR in coming months Recruitment Drive: Tesla stepped up hiring for India operations earlier this year Despite high import duties, Tesla seems confident in the aspirational pull of its brand among India’s growing premium consumer base. The Model Y is the world’s best-selling EV as per 2024 global sales rankings. What’s Next for Tesla in India?While a broader local strategy appears off the table for now, Tesla may explore limited fleet sales or ride-hailing partnerships, say analysts. However, without local production, the company will remain confined to a niche segment due to high pricing, unless the government revises its import duty framework or Tesla revisits its manufacturing plans. Tesla’s showroom opening in Mumbai is a milestone, but not yet a gamechanger. With no manufacturing plans, no subsidy participation, and high import costs, India remains a marginal market for Tesla — unless future policy tweaks and demand projections prompt a strategic rethink. Get Latest News live on Times Now along with Breaking News and Top Headlines from Business, Companies and around the world.