Tesla Inc will open its first showroom in India in July, people familiar with the matter said, officially launching operations in the world’s third-largest auto market as the Elon Musk-led company seeks growth amid falling sales in Europe and China.
According to people familiar with the matter, the electric car giant’s first batch of vehicles has arrived in China, namely the Model Y rear-wheel drive SUV shipped from Tesla’s Chinese factory. said the person, who spoke on condition of anonymity because the information is private, and in documents seen by Bloomberg News. Model Y is the world’s best-selling electric car.
People familiar with the matter said Tesla will open its first showroom in Mumbai as early as mid-July, followed by a showroom in New Delhi. The company also imports supercharger components, auto parts, merchandise and spare parts from the United States, China and the Netherlands, documents show.
The debut will end a years-long on-and-off saga for Tesla entering India. Musk has long had his eye on the Indian market but has been unable to enter due to disagreements over tariffs and local manufacturing. Tesla’s breakthrough into India came after Musk met Indian Prime Minister Narendra Modi in the United States in February.
Bloomberg News reported in February that Tesla planned to ship thousands of vehicles to a port near Mumbai.
A Tesla spokesperson did not immediately respond to an email seeking comment on the opening and preparations for the Indian showroom.
premium
Five Model Y vehicles have arrived in Mumbai from Tesla’s Shanghai factory, according to documents reviewed by Bloomberg. The cars had a declared price of 2.77 million rupees ($31,988, approximately 2.77 million rupees) and attracted an import duty of over 2.1 million rupees (approximately 2.1 million rupees) – a levy consistent with India’s 70% duty plus surcharge on imported complete vehicles below $40,000 (approximately 3.46 million rupees). File display.
According to people familiar with the matter, the model is expected to be priced at more than $56,000 (approximately Rs. 48.5 lakh) before taxes and insurance, but Tesla will determine the final price based on its profit margins and positioning strategy.
In comparison, the same model is priced at $44,990 (approximately Rs. 39 lakh) ex-showroom in the US and $37,490 (approximately Rs. 32.50 lakh) after applying tax credits.
The high price could be a major obstacle to Tesla’s plans as the automaker needs to convince value-oriented consumers to open their wallets. Data from the Indian government’s vehicle registration portal shows that electric vehicles account for a little more than 5% of new passenger car sales in India, but the market share of premium cars is still less than 2%.
strengthen
The company has not named a new country head following the departure of Prashanth Menon, but is stepping up hiring for its charging, retail and policy teams, according to people familiar with the matter.
The Model Y imports represent Tesla’s first foray into the market, with Tesla planning to expand its presence, including offering more models.
The company is leasing warehouse space in the southern Indian state of Karnataka and adding more in Gurgaon outside New Delhi, people familiar with the matter said.
Tesla executives from other countries visit showrooms in Mumbai and New Delhi every week in high-profile luxury business districts to attract wealthy shoppers, people familiar with the matter said.
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