Tesla Expands into India with First Showroom

Strategic Insights -

Tesla, the American electric vehicle (EV) maker, has officially entered the Indian market with its first showroom in the city of Mumbai. The move comes after years of delays and policy friction, marking a significant expansion into the world's third-biggest automotive market. Located in the upscale Bandra-Kurla Complex, the showroom will serve as Tesla's flagship retail and experience outlet, introducing its EV lineup to Indian customers.

Tesla's entry into India signals rising investor confidence and strengthens the country's move toward clean mobility, although the company's higher pricing is likely to make its cars unaffordable for most Indians. The country's nascent electric vehicle market made up a little more than two per cent of total car sales last year, but the government aims to increase the electric vehicle share to 30 per cent by 2030.

Key Takeaways:

  • Tesla has opened its first showroom in India, marking the electric vehicle maker's long-anticipated debut in the world's third-biggest automotive market.
  • The showroom is located in the upscale Bandra-Kurla Complex in Mumbai and will serve as Tesla's flagship retail and experience outlet.
  • Tesla will begin by importing and selling its popular Y model cars in India, with the base price set at 6.78 million rupees ($79,089 U.S.) for the long-range, rear-wheel drive vehicle.
  • Delivery of the cars is expected to start from the third quarter of this year.
  • Tesla will compete mostly with German luxury carmakers such as BMW and Mercedes-Benz Group AG, and not budget Indian players like Tata Motors Ltd. and Mahindra & Mahindra Ltd.
  • The luxury car market makes up just about one per cent of total vehicle sales in India.
  • Prime Minister Narendra Modi's government has wooed Tesla for years for its global brand value and to boost the country's clean energy endeavors.
  • Tesla CEO Elon Musk invited Indians to preorder the Tesla Model 3 in April 2016, but the cars never arrived and the booking amount had to be refunded.
  • The company faces challenges in its two core markets, China and the U.S., with sales of Tesla electric cars falling sharply from April to June due to boycotts over Elon Musk's political views.

Statistics:

  • The country's electric vehicle market made up a little more than two per cent of total car sales last year.
  • The government wants to increase the electric vehicle share to 30 per cent by 2030.
  • The base price of the Tesla Y model cars in India is 6.78 million rupees ($79,089 U.S.) for the long-range, rear-wheel drive vehicle.
  • Delivery of the cars is expected to start from the third quarter of this year.
  • The luxury car market makes up just about one per cent of total vehicle sales in India.

Sources:

  • The Associated Press (no date)
  • Tesla's presentation during the showroom launch (no date)
  • Gaurav Vangaal, associate director with S&P Global Mobility (no date)
  • Elon Musk's social media platform X (2019)