Tesla has finalised locations for its first showrooms in New Delhi and Mumbai, marking a major step forward in its long-anticipated entry into the Indian electric vehicle (EV) market, sources familiar with the matter told Reuters.
The American EV maker has been scouting for showroom spaces since late 2023, after shelving its India expansion plans in 2022 due to policy hurdles. The latest move signals Tesla’s renewed commitment to establishing itself in the world’s third-largest auto market.
Tesla has reportedly secured a retail space in New Delhi’s Aerocity, a commercial hub near Indira Gandhi International Airport, which is home to global corporate offices, luxury hotels, and retail outlets.
Meanwhile, in Mumbai, the company has selected Bandra Kurla Complex (BKC)—one of India’s premier business districts, close to Chhatrapati Shivaji Maharaj International Airport.
According to Reuters sources, both outlets will span around 5,000 square feet. However, Tesla has not yet finalised the opening dates for the showrooms.
Tesla’s first phase in India will focus on selling imported EVs, rather than setting up local manufacturing. “These deals are for showrooms, not service centres,” a source revealed, adding that Tesla will directly operate its retail outlets in the country.
The company has also ramped up hiring in India, posting job listings for 13 mid-level positions, including store and customer relationship managers.
Elon Musk has been vocal about India’s high import duties, which currently stand at 100% on fully assembled EVs. Tesla has lobbied for tariff reductions but faced resistance from Indian automakers who fear competition in the growing EV sector.
During a recent meeting between Indian Prime Minister Narendra Modi and U.S. President Donald Trump, the leaders discussed trade policies and tariffs, hinting at a potential resolution that could make it easier for Tesla to enter the market.
Tesla’s India strategy could gain momentum if the government revises its EV tariff policy, allowing reduced duties in exchange for investment commitments.
With luxury EV demand rising in India, Tesla’s launch is expected to intensify competition with brands like Mercedes-Benz, BMW, and Hyundai, which have already introduced their premium electric models in the country.