Electric vehicle giant Tesla is making a significant move into the Indian market, with plans to open its first showroom in Mumbai’s prestigious Bandra Kurla Complex on July 15. This launch signifies Tesla’s official entry into India, a country known for being the world’s third-largest auto market.
Despite not manufacturing cars locally, Tesla has been importing vehicles and merchandise into India, with trade data showing imports valued at around $1 million in the first half of the year. Most of these shipments have come from China and the U.S., including popular models like the Model Y SUV and Tesla Superchargers. However, the company faces high import duties of approximately 70%, which could potentially drive up prices for Indian consumers.
The Indian government has been actively encouraging Tesla to set up local manufacturing operations for electric vehicles, even offering new policies to attract investment. Last year, there were talks of Tesla CEO Elon Musk announcing a multi-billion dollar investment in India, but plans for a factory in the country have been put on hold for now.
Despite the lack of local manufacturing, Tesla has been actively hiring in India for various roles in sales, service, store management, supply chain, and driver-assistance technology. This strategic expansion into the Indian market comes at a time when Tesla is facing challenges with falling global sales and underutilized factory capacity in other regions.
Overall, Tesla’s foray into India is a significant step towards establishing a strong presence in one of the world’s fastest-growing automotive markets. With the launch of its showroom in Mumbai, Tesla is poised to make a splash in India’s electric vehicle sector and cater to the growing demand for sustainable transportation options in the country.