MUMBAI: Tesla officially entered the Indian market with its first showroom opening in Mumbai, marking a strategic move by Elon Musk’s electric vehicle giant to expand beyond slowing sales in the US and Europe. The inauguration was led by Maharashtra Chief Minister Devendra Fadnavis, with select visitors granted early access.
Tesla’s India debut follows years of hesitation due to the country’s steep import duties on EVs. Musk has previously called India’s tariffs “among the highest in the world,“ though he acknowledged the nation’s potential. New Delhi has offered reduced import taxes conditional on automakers committing to local manufacturing, but Tesla has yet to announce plans for an Indian plant.
Initial sales will rely on vehicles imported from China, with deliveries expected by late August. The Model Y starts at around $70,000 in India—nearly double its US price after federal incentives. Analysts caution that Tesla’s premium pricing may limit its appeal in a price-sensitive market dominated by affordable Chinese rivals like BYD.
India’s EV sector is growing but remains niche, accounting for under 3% of total car sales in 2024. Counterpoint analyst Soumen Mandal predicts modest initial sales of 500–700 units, tapering to 200–300 monthly. “Tesla won’t chase volume immediately due to its pricing,“ Mandal noted.
The launch coincides with ongoing US-India trade talks, including potential auto tariff reductions. Musk met Prime Minister Narendra Modi in February, signaling deeper engagement with India’s evolving EV policy landscape. – AFP
