Tesla Enters India With ‘Experience Center,’ But No Plans To Manufacture Yet

India-West News Desk

MUMBAI – Tesla has formally launched its operations in India with the opening of its first showroom—dubbed an “experience center”—in Mumbai’s Bandra Kurla Complex (BKC), a key commercial hub. The move marks the electric vehicle giant’s long-awaited entry into the world’s third-largest car market, though it comes without the manufacturing investment that India had long hoped for.

The 4,000 square foot space serves as a retail and showcase outlet rather than a production hub. Tesla has also secured three other commercial properties in the country: a registered office in Bengaluru, an engineering center in Pune, and a temporary administrative office near BKC.

Despite years of lobbying by the Indian government and a policy overhaul aimed at attracting Tesla to set up local manufacturing, the company has indicated that it currently has no plans to build vehicles in India. Instead, it has opted to import a limited number of vehicles and accessories, navigating India’s steep import duties—around 70%—to begin sales.

Between January and June this year, Tesla imported roughly $1 million worth of products into India, according to publicly available trade records. These included six Model Y SUVs, EV charging equipment, and branded merchandise, sourced mainly from the U.S. and China.

This launch comes at a time when Tesla is grappling with excess capacity at its global factories and slowing demand in key markets. Selling imported vehicles in India allows the company to test the waters without committing to a costly manufacturing base.

Tesla CEO Elon Musk had previously expressed interest in making a large investment—estimated between $2 billion and $3 billion—in India’s EV sector, but those plans were shelved, and a planned visit to India last year was canceled at the last minute, despite being wooed by Prime Minister Narendra Modi himself.

U.S. political concerns may also be playing a role. Former President Donald Trump recently criticized the idea of Tesla building a factory in India, calling it “unfair” to the U.S. if done to bypass tariffs. The spat between Elon Musk and Trump has been public and angry. (with IANS and Reuters inputs)