Introduction to Tesla in India
Tesla has finally made its entry into the Indian market, nine years after CEO Elon Musk first announced the plan in 2016. The company has opened its first showroom, called an "Experience Center", in Mumbai’s Bandra Kurla Complex. This move marks a significant milestone for Tesla in one of the world’s largest automotive markets.
The Experience Center
The 4,000-square-foot Experience Center features the Model Y in rear-wheel drive (RWD) and long-range RWD versions, imported from Shanghai. The Model Y RWD is priced at ₹59,89,000 (approximately $68,000), while the long-range RWD is priced at ₹67,89,000 (approx. $79,000). Customers can order the Model Y starting today for registration in Delhi, Gurugram, and Mumbai by paying a non-refundable deposit of ₹22,220 (approx. $260).
Charging Infrastructure
Ahead of deliveries, Tesla has committed to establishing four charging stations in both Mumbai and Delhi, including Supercharger posts and destination chargers. The company is also expected to open its second store in Delhi later this month as part of its expansion in India. Additionally, Tesla plans to import cars from its facility in Berlin once the India-EU free-trade agreement is signed.
India’s EV Market
India is the fourth-largest automotive market after China, the U.S., and Japan, with nearly 6 million vehicles produced annually. However, the country has a relatively small EV footprint, primarily captured by two-wheelers. The government plans to have 30% of all automotive sales be electric by 2030. Tesla’s entry into the Indian market is expected to give a boost to the country’s EV sector.
History of Tesla’s India Plans
In 2016, Musk announced plans to launch Tesla’s Model 3 in India and teased its local Supercharger network. The company even took $1,000 deposits from potential Indian customers, which it recently refunded as the launch was uncertain. Musk has discussed Tesla’s plans with Prime Minister Narendra Modi and his senior officials several times. The Indian government has been trying to convince Tesla to establish its factory in the country, but Musk has remained unconvinced.
Current Operations
Tesla has hired several people in India and still has tens of jobs listed in cities including New Delhi, Pune, and Mumbai. However, the company does not have a specific head in India. In May, Prashanth Menon, who was overseeing India operations, resigned from his position and reportedly stepped down as chairman of Tesla India’s board. Tesla CFO Vaibhav Taneja is currently overseeing India operations, with a few local board directors responsible for policy, sales, and human resources.
Challenges and Opportunities
The India launch comes as Tesla is facing a tough time in major markets, including China, Europe, and the U.S. Local players, such as BYD, are eating into Tesla’s market share in China. Tesla’s sales in Europe declined by nearly 28% year-over-year in May, while its U.S. sales experienced a 13% year-over-year decline in the first six months of this year. However, the company’s China-made EV sales increased 16% year-over-year, which includes both domestic sales in China and exports to Europe and other markets.
Conclusion
Tesla’s entry into the Indian market marks a significant milestone for the company. With its Experience Center in Mumbai and plans to establish charging infrastructure, Tesla is well-positioned to tap into India’s growing EV market. However, the company faces challenges in major markets, and its success in India will depend on its ability to navigate the country’s regulatory environment and compete with local players. As the Indian government aims to increase EV adoption, Tesla’s presence in the market is expected to give a boost to the country’s EV sector.
