After years of delays and countless rumors, Tesla has entered the Indian automotive marketplace with the launch of an "experience center" in Mumbai, Teslarati reported.
Half a dozen display vehicles were imported for the July 15 launch, which was intended to gauge interest among consumers.
One of the challenges facing Tesla in the market is sky-high tariffs, which amount to around 70% on imported vehicles, according to Teslarati. With no manufacturing facilities in the country, the company has no choice but to import its vehicles, at least until a domestic production plant can be brought online, which would take years.
"In the future, we wish to see R&D and manufacturing done in India, and I am sure at the appropriate stage, Tesla will think about it," said Devendra Fadnavis, chief minister of Maharashtra, according to Reuters.
The tariffs make India's Teslas far more expensive than they are in other markets.
The Model Y will sell for roughly $70,000 in its standard rear-wheel-drive configuration, while the long-range model will start at nearly $79,000, per Reuters. These vehicles sell in the United States for around $32,500 and $46,000.
The move into the Indian marketplace comes as Tesla's global sales continue to slump. From April through June, Tesla sold 13% fewer vehicles than it did during the same period a year prior, CBS News reported.
Overall, Tesla's share of the U.S. EV market has plummeted from 60% in 2020 to 38% in 2024, largely because of stiffer competition, according to the International Energy Agency.
Perhaps most troubling, Tesla has struggled even as overall sales of electric vehicles have climbed.
In 2024, 1 in 5 new cars sold was an EV, totaling 17 million worldwide and an increase of 25% over the year prior, the IEA found.
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