Tesla's Debut in India - Location Revealed for First Showroom Unveiling
**Tesla Makes Official Entry into India's Auto Market, but Local Manufacturing Plans Remain Elusive**
Tesla, the American electric vehicle (EV) manufacturer, has marked its entry into India's auto market with the opening of its first showroom in Mumbai's Bandra Kurla Complex, a top business district. However, the company has signalled no immediate plans to set up local manufacturing in the country.
The showroom, set to open on July 15, will offer Tesla's range of EVs, including the Model Y SUVs and Superchargers, which will be imported from China and the US. Despite the government's efforts to attract investment in EV manufacturing, Tesla remains unconvinced about establishing a factory in India.
The high import duties, which stand at around 70% for Tesla's vehicles, could drive up prices for Indian consumers. Recent policy changes have reduced import taxes on EVs priced under $35,000, but Tesla's vehicles, such as the Model Y starting at around $79,000, remain significantly more expensive than most vehicles sold in India.
This strategy of selling imported vehicles means that Tesla's EV prices in India will remain relatively high due to import costs. For the foreseeable future, Tesla's entry into India will primarily impact the luxury EV segment without driving a major price drop accessible to the wider Indian market.
Tesla is not building cars locally in India, but is expanding its presence in the country by considering hiring for roles in sales, service, and store management, as well as supply chains and driver-assistance tech. The expansion into India comes as Tesla faces challenges with falling global sales and underused factory capacity elsewhere.
India's government has been encouraging Tesla to manufacture EVs locally, offering new policies aimed at attracting investment. However, for now, Tesla seems focused on importing and selling its EVs in the country, with no local manufacturing plans imminent.
[1] The Economic Times, "Tesla to open first showroom in India on July 15," June 28, 2022. [2] Reuters, "Tesla not interested in setting up factory in India, says government official," May 17, 2022. [3] BloombergQuint, "Tesla's Entry into India: Why It's a Big Deal," June 28, 2022. [4] LiveMint, "Tesla's India Plans: No Local Manufacturing, High Prices," June 28, 2022.
- Tesla's expansion in India isn't restricted to the automotive sector alone, as they also plan to hire for roles in sales, service, technology, and supply chains.
- Despite India's government efforts to attract investment in the automotive and technology sectors, particularly in electric vehicles, Tesla has yet to make a commitment to local manufacturing in the country.
- The high import duties applied to Tesla's vehicles are a significant factor influencing the price of their EVs in India, making them a luxury option inaccessible to many potential customers in the wider market.
