Tesla to Launch in India with First Showroom in Mumbai
Elon Musk-led Tesla is set to open its first showroom in India next week. The new showroom for Tesla’s electric cars will open in Mumbai on July 15, according to a report. With this the Musk-led electric vehicle manufacturer takes a step towards starting operations in India, the world’s third-largest automotive market.
In early March, reports indicated that Tesla finalized a lease agreement for its first showroom location in Mumbai. This marks its entry into the Indian market.
Also read: Tesla Moves Closer to India Entry with Import-First Strategy
Tesla’s entry into India comes at a time when the EV maker is facing reduced sales in Europe and China. According to a Bloomberg report last month, the first Tesla deliveries to India consist of Model Y rear-wheel drive SUVs. They were manufactured at the company’s Chinese facility. The Model Y currently ranks as the world’s most popular electric vehicle.
According to the report, Tesla has brought five Model Y vehicles to Mumbai from its Shanghai plant. These vehicles were valued at 27.7 lakh rupees ($31,988), with an import duty exceeding 21 lakh rupees. This duty corresponds to India’s standard 70% tariff, plus additional levies on fully imported vehicles priced below $40,000.
A few months ago, the electric vehicle company intensified its recruitment efforts for its Indian operations. Another showroom is expected to open in Delhi-NCR.
Last month, Heavy Industries Minister Kumara Swamy confirmed a key point. Tesla has shown no inclination towards setting up electric vehicle production units in India. Their interests are limited to establishing showrooms within the country.
US President Donald Trump often voiced his opposition to Tesla’s possible manufacturing ventures in India. He labeled such potential developments as ‘very unfair’. Tesla’s engagement with India’s electric vehicle manufacturing programmes has been minimal.
Tesla participated in the initial stakeholder meeting about the Scheme to Promote Manufacturing of Electric Cars in India. However, they did not attend the subsequent two consultation sessions.
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