Tesla finally arrived in India — fashionably late to its own party.
After almost a decade of broken promises and dashed hopes, Tesla opened its first showroom in Mumbai on July 15, marking the electric-vehicle pioneer’s entry into the world’s third-largest automobile market.
The 4,000-square-foot store in financial capital Mumbai represents a significant milestone for Tesla, which began accepting Indian preorders in 2016. The all-white showroom featuring two Model Y SUVs targets India’s luxury car segment. Model Y, available for delivery in the third quarter, is priced at 6.1 million rupees ($70,000) — about $15,000 more than its U.S. starting price due to 70% import duties on China-made vehicles.
India’s EV market has evolved since Tesla first announced its plans, with domestic players such as Tata Motors and global brands like MG commanding significant market share. Tesla’s India entry coincides with Vietnamese company VinFast unveiling its first showroom in the country and breaking ground on local manufacturing, highlighting the competitive landscape Tesla now faces.
“Though Tesla has struggled against BYD and others in markets such as the U.K., in India, it still holds strong customer perception over Chinese and Indian competitors,” Yugal Joshi, partner at global consultancy Everest Group, told Rest of World. “Given the price and the retail showroom-led strategy, Tesla is focusing on only a select customer segment.”
Tesla’s target demographic appears narrow in an already small market, where fewer than 70,000 four-wheeler EVs were sold in 2024. The EV penetration rate in India’s four-wheeler segment remains below 2%, according to government data. Luxury EV sales by established brands like Mercedes and Porsche totaled fewer than 3,000 units last year.
Industry experts have questioned whether Tesla’s technological advantages will resonate with Indian consumers. The company’s autonomous driving capabilities — a key differentiator in Western markets — hold limited appeal in India, given the traffic conditions.
“Tesla’s technological superiority when it comes to autonomous or self-driving cars won’t be a differentiator, because they are still not widely adopted in India,” Shivani Palepu, principal analyst for transport at Gartner, told Rest of World. “That leaves Tesla with only one strong selling point in India: its brand.”
The delayed entry has tested the patience of customers who had prebooked Tesla vehicles. Arun Bhat S, the co-founder of Tesla Club India, which has more than 21,000 followers, had paid a $1,000 deposit in 2016. He now has no plans to visit the Mumbai store. “There are a lot of other EVs in that price range now,” the Bengaluru resident told Rest of World. “Definitely, Tesla has lost a lot of ground due to the delay in coming in.”
Eventually in the future, we wish to see all the R&D and manufacturing being done in India.
Entrepreneur Vishal Gondal visited the showroom after finally receiving a refund for a deposit he had made in 2016. He expressed skepticism about the selection of available Tesla models and service infrastructure. Gondal told Rest of World he questioned whether the company has established adequate supercharger networks and service capabilities, while expressing disappointment in the product itself.
“The Model S would have been much better,” said Gondal, who drove his Audi Q8 E-Tron to the Tesla store. “Or even the Cybertruck.”
Tesla’s website currently says there are eight “superchargers coming soon” at locations across Mumbai and New Delhi, where the company has reportedly planned to open its next India showroom.
Manufacturing remains Tesla’s biggest challenge in India despite government incentives designed to attract foreign investment. India offers duty reductions from 110% to 15% on EVs priced above $35,000, provided manufacturers invest at least $500 million in local production.
“This is a good start,” Devendra Fadnavis, chief minister of Maharashtra state, where Mumbai is located, said about Tesla’s new showroom. “But eventually in the future, we wish to see all the R&D and manufacturing being done in India.”
Great Job Ananya Bhattacharya & the Team @ Rest of World – Source link for sharing this story.
