Tesla Inc. is set to debut in India in July with Made-in-China EVs
Tesla Inc. is set to debut in India with its first showrooms opening in July, marking a significant step in entering the world’s third-largest automobile market. The Elon Musk-led company aims at expanding its global footprint rapidly amid sharply declining sales figures in Europe and slumping sales in the Chinese market. Sources familiar with the matter and documents reviewed by Bloomberg News reveal Tesla’s initial fleet includes Model Y rear-wheel drive SUVs shipped from its Shanghai facility. Model Y has already landed in the country, being the world’s best-selling electric car presently. The first Tesla showroom is slated to open in Mumbai by mid-July, followed closely by another in New Delhi. Tesla has imported Supercharger components and spare parts from facilities in the US and the Netherlands, alongside accessories and merchandise, before launch. Years of uncertainty surrounding Tesla’s entry into India finally end with this move after being delayed by tariff disputes and local production issues. Musk met Indian Prime Minister Narendra Modi earlier this year, and it was pivotal for surmounting those challenges successfully. Premium Pricing and Market Challenges Tesla’s Model Y units landed in Mumbai were declared at ₹2.77 million (approximately $31,988) and attracted over ₹2.1 million in hefty import duties under India’s 70% tariff on fully assembled imported vehicles priced below $40,000. The cars are expected to retail at a whopping $56,000 before taxes and insurance in India, significantly higher than the US price of $37,490 after tax credits. The steep price tag poses a significant challenge in value-conscious markets like India, where premium cars make up less than 2% of total vehicle sales and electric vehicles account for just over 5% of new passenger car registrations. Operational Expansion Tesla is scaling up its local presence, leasing large warehouse facilities in Karnataka while rapidly bolstering its workforce across various departments, including charging infrastructure and retail. Executives from other regions have been making frequent visits lately to oversee preparations following Prashanth Menon’s departure. The Mumbai and New Delhi showrooms will be situated prominently in luxury districts, targeting affluent potential buyers. Tesla’s initial foray into India’s automotive scene unfolds with plans brewing to roll out more models and ramp up operations eventually.