Anand Mahindra welcomes Tesla’s India debut, revives old challenge to Musk as EV race heats up

He followed up with another post, writing, “Competition drives innovation, and there’s plenty of road ahead. Looking forward to seeing you at the charging station.”

Mahindra also revisited an old conversation with Elon Musk from eight years ago. At that time, Musk had applauded India’s aim to switch entirely to electric vehicles by 2030. Mahindra had then replied, “Time you got out here Elon. You don’t want to leave that whole market to Mahindra do you? The more the merrier and greener..!” Musk had responded with a brief, “Good point.”
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Tesla’s arrival was marked by more than just the showroom launch.

Maharashtra Chief Minister Devendra Fadnavis inaugurated the new facility at Mumbai’s Bandra Kurla Complex and expressed optimism about future collaboration.

First showroom, legal nod, and early logistics

Industry observers say the first Model Y units showcased in Mumbai were brought in from Tesla’s Shanghai factory. The company has also leased a 24,000-square-foot warehouse at Lodha Logistics Park in Mumbai to manage inventory and spare parts.

Ahead of the showroom opening, Tesla obtained a trade certificate from the Andheri RTO, which allows the company to conduct test drives and sell vehicles using unregistered units under the Motor Vehicles Rules.

Tesla’s India entry and the policy backdrop

Tesla’s launch aligns with India’s new EV policy, which includes import duty relaxations and various incentives aimed at encouraging global electric car manufacturers. In April, Prime Minister Narendra Modi and Elon Musk discussed possible collaboration in a phone call, following an in-person meeting in the US this February.

With its Mumbai showroom now operational, Tesla is preparing to test the Indian market — one of the fastest-growing in the global auto sector.

The timing could be key, as the EV giant grapples with flagging sales in Europe and China, according to media reports.

However, India’s high import tariffs remain a significant hurdle. Compared to the US or Europe, Indian buyers could end up paying nearly double for the same Tesla model.

The company has previously sought duty concessions, with Elon Musk delaying his India visit last year while lobbying for a 70% reduction in duties for EVs priced under $40,000 and a full waiver for more expensive models.

The Indian government, however, held firm. Commerce and Industry Minister Piyush Goyal reiterated that the EV policy is designed to be inclusive and will not be tailored to favour any single company.

Further complicating matters, US President Donald Trump recently commented that Tesla setting up a plant in India to bypass tariffs would be “unfair” to the US.

Design blends global and local

Tesla’s Mumbai showroom is designed to reflect the brand’s global aesthetic — minimalist white interiors, clean layouts, and sleek displays that highlight its technology. Elements of Indian design have also been incorporated under the direction of architect N Neeta Sharada, according to an Economic Times report.

For now, Tesla’s strategy is clear: look, test, buy. But the bigger question remains — will the company take the leap into local manufacturing, or continue to rely solely on imports?

As it stands, Anand Mahindra’s old challenge still echoes. The electric vehicle race in India has truly begun.

Tesla's next stop

The next phase of Tesla’s India rollout will see a second showroom open in New Delhi, extending the brand’s presence to the country’s two biggest metro cities, according to a Times of India report.

The vehicles currently on display have been shipped from Tesla’s Shanghai Gigafactory in China. Union Minister HD Kumaraswamy recently clarified that Tesla has no immediate plans to manufacture vehicles in India.

Tesla also plans to roll out its next-generation V4 Superchargers across India, starting with installations before vehicle deliveries begin.

These chargers can add 267 kilometres of range in just 15 minutes. Four charging stations are also being planned in Delhi, with a combined total of 16 Superchargers.

Tesla’s India entry comes at a time when global sales have dipped. Between April and June, Tesla reported a 13% decline in deliveries year-on-year, selling 384,122 vehicles compared to 443,956 the previous year — a slump attributed partly to political controversies surrounding Musk.

India, seen as a new growth market, could help offset the slowdown in the US and China.

Founded in 2003 by Martin Eberhard and Marc Tarpenning, Tesla has evolved from a little-known startup to one of the most prominent names in the electric vehicle industry.

Named after inventor Nikola Tesla, the company has become a symbol of innovation in the clean mobility space.