Tesla Motors has inaugurated its long-awaited first showroom in India, marking its official market entry. This milestone arrives nine years after CEO Elon Musk initially revealed expansion plans in April 2016, following repeated delays and timeline adjustments. The automaker now establishes its presence in one of the world's largest automotive markets.

Dubbed an "Experience Center," the 4,000-square-foot facility occupies Mumbai's prime Bandra Kurla Complex at Maker Maxity mall. Showcasing Shanghai-imported vehicles, the space features both rear-wheel-drive and long-range rear-wheel-drive Model Y variants. Pricing starts at 5.989 million rupees ($68,000) for the base model, while the extended-range version commands 6.789 million rupees ($79,000). An optional Full Self-Driving package carries a 600,000-rupee ($7,000) premium.

Indian customers can immediately place orders, with buyers in Delhi, Gurugram, and Mumbai required to submit a non-refundable 22,220-rupee ($260) deposit. Initial deliveries for the standard Model Y will commence this quarter, while the long-range variant arrives in Q4.

Preceding vehicle handovers, Tesla Motors has committed to installing four charging stations each in Mumbai and Delhi, combining Superchargers and Destination Chargers. A second Delhi showroom will open later this month as part of broader expansion efforts. The company also intends to import vehicles from its Berlin factory pending finalization of an India-EU free trade agreement.

Despite ranking as the world's fourth-largest auto market behind China, the U.S., and Japan with nearly 6 million annual vehicle productions, India's EV sector remains nascent and dominated by two-wheelers. The nation aims for EVs to constitute 30% of total vehicle sales by 2030.

Musk's 2016 announcement to launch the Model 3 in India included plans for a local Supercharger network. While Tesla Motors collected $1,000 deposits from prospective buyers, recent refunds were issued due to launch uncertainties. The CEO has since held multiple private discussions with Prime Minister Narendra Modi and senior officials. During early negotiations, Indian authorities actively lobbied for local manufacturing facilities.

Commerce Minister Piyush Goyal revealed in 2023 that Tesla Motors planned to nearly double Indian component procurement to $1.9 billion that year. Modi's administration continued manufacturing discussions with executives, though sources confirm Musk currently has no near-term plans for domestic production.

Tesla Motors maintains several dozen open positions across New Delhi, Pune, and Mumbai despite recent hiring. Leadership remains unsettled following the May resignation of India operations head Prashant Menon, who also reportedly vacated his board chairman position. CFO Vaibhav Taneja now oversees Indian operations alongside local board members managing policy, sales, and HR functions.

India's 2024 EV import tax reduction enables cheaper vehicle imports, addressing Tesla Motors' longstanding concerns about 100% tariffs. Despite the high duties, Taneja described the market as "exceptionally hot" during April's earnings call. Heavy Industries Minister H.D. Kumaraswamy recently confirmed the automaker "has no interest in commencing manufacturing operations in India."

This Indian foray coincides with challenges across Tesla Motors' core markets. BYD and other domestic manufacturers operating in India simultaneously erode Tesla's Chinese market share. While Tesla's China-made EV sales (including exports) grew 16% YoY, Q2 deliveries plunged 6.8% amid local competition—the third consecutive quarterly decline. European registrations plummeted nearly 28% YoY in May despite overall market growth of 1.9%, extending losses to five months. U.S. sales dropped 13% to 255,000 units during H1, contributing to a 13% global Q2 sales decline to 443,956 vehicles.