Tesla, Elon Musk's company, is set to establish its presence in India, beginning with the inauguration of its first showroom in Mumbai in July.
Elon Musk, one of the world's most prominent entrepreneurs, is embarking on a new venture in India. Tesla's first vehicles have already arrived in India, and the company is preparing to open its inaugural showroom in Mumbai. Concurrently, its satellite internet service, Starlink, has received approval to commence operations in India. Both projects have the potential to significantly reshape India's automotive and internet connectivity landscapes.
Tesla's entry into the Indian market has been anticipated for years, and this long wait is finally nearing its end. Musk's plans are materializing at a time when his political standing in the United States is also under significant scrutiny. Is this the beginning of a strategic presence in India, or a response to global pressures? Let's explore this in detail.
Tesla's India Entry: The First Showroom is Finally Opening
Tesla is officially entering the Indian market in July 2025. The company is preparing to open its first showroom in Mumbai, potentially by mid-July, followed by another in New Delhi. Sources indicate that Tesla has imported supercharger equipment, accessories, and other necessary materials from the United States, China, and the Netherlands.
Tesla's initial shipment includes five Model Y vehicles, shipped from its Shanghai plant in China and already arrived in Mumbai. This rear-wheel-drive electric SUV is considered one of the world's best-selling electric cars.
Tesla's initial presence in India will be marked by these imported vehicles, but the company may consider local production in the future.
Pricing and Tax Structure: A Major Challenge
Currently, fully built imported cars in India face substantial tariffs. Cars priced below US$40,000 incur a 70 percent import duty, while those above this price point face a 100 percent duty.
The Model Y vehicles that have arrived in India have a reported base price of approximately ₹27.7 lakh (approximately US$34,000), but have incurred over ₹21 lakh (approximately US$26,000) in import duties. This means the potential final price of a car, including taxes and other charges, could exceed US$56,000 (approximately ₹46 lakh).
Tesla will strategically determine its pricing to maintain competitiveness in the Indian market.
Tesla's India Journey: A Long-Awaited Arrival
Tesla's entry into India has been delayed for several years. The primary issues were disagreements between the government and the company regarding import duties and local production. However, following a meeting between Elon Musk and Prime Minister Narendra Modi in February 2025, progress accelerated significantly.
According to a Bloomberg report, this meeting led to Tesla's decision to ship vehicles to India, and the company is now fully prepared to establish its showrooms and sales operations.
A Step Towards Digital Revolution: Starlink Approved
In addition to Tesla, Musk's other major company, SpaceX, is also establishing its presence in India. SpaceX's satellite internet service, Starlink, has received permission to launch satellite-based internet services in India.
The Department of Telecommunications (DoT) has granted Starlink a GMPCS (Global Mobile Personal Communication by Satellite) license. This license legally authorizes it to provide internet services in India. The company may now begin its operations in India by the end of 2025 or early 2026.
Bringing Internet to Remote Areas
Starlink aims to provide internet connectivity to rural and remote areas of India where broadband or mobile networks have yet to reach. This satellite-based system could help bridge India's digital divide. Following OneWeb and Jio Satellite Communications, Starlink is the third company permitted to offer such services in India.
However, the company still awaits final approval from IN-SPACe, an Indian space agency.
Musk's Strategy: Distance from Trump, Closeness to India
Elon Musk has recently been involved in tense political and business disagreements with former US President Donald Trump. Therefore, many observers view the rapid advancement of Tesla and Starlink in India within the context of global politics.
A b business presence in India could indirectly exert pressure on US power centers, while simultaneously opening a new avenue for profit in a burgeoning market. In cricketing terms, Musk has played a 'second' delivery against Trump – a surprising move.
An Opportunity Full of Potential for India
India is the world's third-largest automobile market, and demand for electric vehicles is rapidly increasing. The government is also actively promoting its EV policy.
Tesla's presence will provide Indian consumers with access to world-class technology, while also increasing competition within India's EV market. Meanwhile, Starlink's entry will accelerate the realization of the "Digital India" dream in villages and underdeveloped regions.
