Tesla, VinFast Set for India EV Faceoff Tomorrow with Showroom Launch and Pre-Bookings

Indian EV enthusiasts are in for an electrifying Tuesday (July 15), as two of the world’s leading electric carmakers make their much-anticipated debut in India. Tesla, after years of speculation and planning, is all set to open its first showroom in Mumbai. Meanwhile, its Vietnamese rival VinFast will begin pre-bookings for two of its electric SUV models.

According to media reports, Elon Musk-led Tesla will unveil its first showroom—or "experience centre"—at Maker Maxity Mall in Mumbai’s Bandra Kurla Complex on July 15. The company is expected to launch its Model Y in India, priced at approximately ₹55 lakh. This pricing reflects the duty concessions Tesla received under the Indian government's revised EV policy.

Tesla has long sought entry into the Indian market, but high import duties on fully assembled vehicles (Completely Built Units or CBUs) posed a significant barrier. India previously imposed a steep 110% import duty on CBUs. However, the Union Budget 2025–26 reduced this to 70% for high-end vehicles priced above $40,000 (approximately ₹35 lakh), a move aimed at attracting premium players like Tesla.

The new EV policy also includes a custom duty reduction of up to 15% for cars priced below $40,000, but automakers must commit to investing at least ₹4,150 crore (~$486 million) within three years and begin domestic production within five years. Under the policy, companies are permitted to import up to 8,000 EVs per year, with total customs benefits capped at the actual investment or ₹6,484 crore—whichever is lower.

Since none of Tesla’s current models fall within the under-$40,000 bracket, its vehicles sold in India will still attract at least 70% import duty.

Meanwhile, VinFast is taking a different route. The Vietnamese EV maker has already partnered with 32 dealerships across 27 Indian cities and will begin accepting pre-bookings for its two electric SUVs—the VF6 and VF7—starting Tuesday. The VF6 is expected to be priced around ₹25 lakh, while the VF7 is pegged at around ₹50 lakh.

“This partnership reinforces our focus on delivering an elevated EV experience backed by reliability, customer trust, and service excellence. As we prepare to bring our electric SUVs to Indian roads, we are focused on ensuring that customers across key cities have seamless access to VinFast’s world-class products and support infrastructure,” said Pham Sanh Chau, CEO of VinFast Asia.

Unlike Tesla, VinFast plans to manufacture locally. Construction of its $2 billion manufacturing facility in Tamil Nadu began in 2024 and is expected to be operational by the end of this month. Located in the port city of Thoothukudi, the plant will initially produce about 50,000 units in its first year, scaling up to a capacity of 150,000 units annually. The company also intends to use India as an export hub for markets in the Middle East and Africa. Additionally, VinFast is reportedly in discussions with the Andhra Pradesh and Telangana governments regarding further expansion.

Impact on Indian EV Market

Industry analysts suggest that Tesla may not immediately disrupt the Indian EV market, which is still in its early stages. In 2024, EVs accounted for just 2.5% of the 4.3 million cars sold in India. The government aims to increase this to 30% of all private vehicle sales by 2030.

India's EV space is currently dominated by local players such as Tata Motors, Mahindra Electric, MG Motor, and Hyundai. These companies offer affordable, India-specific EV models and benefiting from government incentives.

According to market research firm Aranca, Tesla’s technologically advanced vehicles come with high price tags, generally exceeding ₹30 lakh ($35,000), whether imported as CBUs or CKDs.

“Unless Tesla launches cost-efficient models in India, it is less likely to directly compete with existing players in the mass-market segment. However, the rising middle class and increasing demand for premium vehicles present a lucrative opportunity for Tesla to capture the growing luxury EV market in India,” Aranca noted in a report from February this year.

Meanwhile, a January report from market intelligence firm ReportLinker said that VinFast’s aggressive entry into India is a landmark move in its global expansion.

“With its innovative electric SUVs and a customer-centric approach, VinFast is poised to make a considerable impact on India’s automotive industry. However, success in this diverse and competitive market will require more than just advanced technology and strategic partnerships,” the report stated.