Mumbai, India — In a bold move signaling a major pivot toward South Asia’s burgeoning electric vehicle (EV) market, Elon Musk’s Tesla has officially opened its first Indian showroom and experience center in Mumbai, Maharashtra. The move, while widely anticipated, has sparked both optimism and controversy, as questions arise about the company’s long-delayed India entry, policy concessions, and local manufacturing commitments.

A Grand Opening Amid Political and Economic Tensions

Tesla’s Mumbai store, located in the upscale Bandra-Kurla Complex, was inaugurated with significant fanfare on July 14. The event featured top Tesla executives, Maharashtra Chief Minister Eknath Shinde, and U.S. Consulate representatives. Notably absent, however, was Elon Musk himself, who instead delivered a virtual address citing “future ambitions for deeper collaboration with India.”

Sources close to the matter reveal that Tesla secured fast-track approvals and a 10-year lease for the flagship store under the Maharashtra Industrial Policy 2023, which offers benefits for foreign EV manufacturers. Some critics argue this reflects preferential treatment and raises transparency concerns, especially amid Tesla’s long-standing tussle with the central government over import duties.

Years in the Making — And Delays Explained

Tesla first registered its Indian subsidiary, Tesla India Motors and Energy Pvt Ltd, in Bengaluru in January 2021. Since then, the EV giant had kept Indian customers in suspense due to stalled negotiations over import taxes — currently at 60–100% — and Tesla’s refusal to commit to local production without reduced levies.

“Tesla wanted India to be flexible, but India wanted Tesla to invest before relaxing policies,” explained automotive analyst Rajesh Thakkar. “This stalemate delayed the launch by nearly four years.”

However, government insiders say recent behind-the-scenes negotiations, reportedly influenced by Tesla’s promise to begin India-based manufacturing by 2026, finally broke the deadlock.

What’s on Offer — and What’s Not

The Mumbai store currently showcases the Model 3 and Model Y, priced between ₹55 lakh to ₹75 lakh ($66,000 to $90,000), targeting India’s luxury segment. Test drives are being offered only by appointment, and deliveries are expected to begin in Q4 2025, initially through imports.

Tesla has not yet announced any Gigafactory plans in India, though rumors point to a potential site in Gujarat or Tamil Nadu. A Tesla executive speaking on condition of anonymity said the company is in “advanced land acquisition talks” and plans to manufacture affordable EVs for both the Indian and global markets.

Skepticism from Indian EV Startups

While the public reaction to Tesla’s entry has been largely enthusiastic, several domestic EV startups have voiced concern.

“This creates an uneven playing field,” said Tarun Mehta, co-founder of Ather Energy. “Tesla is entering with government incentives while Indian startups had to build from scratch with limited support.”

Industry insiders are also wary of Tesla’s aggressive global pricing strategy and its impact on India’s fragile EV ecosystem.

Environmental and Infrastructure Challenges

As Tesla eyes India’s urban elite, infrastructure remains a hurdle. India has less than 10,000 public EV charging stations, with Mumbai accounting for just over 200. In response, Tesla has reportedly signed MoUs with Adani Electricity and Tata Power to develop a fast-charging network across Maharashtra and Delhi NCR.

Environmental activists, meanwhile, argue that without a renewable energy transition, adding EVs may only shift the pollution burden to power plants.

What’s Next?

While Tesla’s arrival is a landmark for India’s EV narrative, the bigger test lies ahead — can Tesla adapt to India’s complex regulatory landscape, price-sensitive consumers, and infrastructural gaps?

As Elon Musk himself said in his virtual remarks: “This is not the finish line, it’s just the starting line.”