Tesla is set to open its first showrooms in India in July 2025, targeting New Delhi’s Aerocity and Mumbai’s Bandra Kurla Complex (BKC), with each showroom around 4,000-5,000 square feet. The Mumbai showroom, located in Maker Maxity at BKC, has a five-year lease starting February 16, 2025, with an annual rent of approximately $446,000 for the first year. Tesla will sell imported electric vehicles (EVs), primarily the Model Y rear-wheel drive SUVs shipped from its China factory, with prices starting around ₹21 lakh ($25,000) for a potential Model 2, though Model 3 and Model Y are likely initial offerings. The company has also posted job listings for over 25 roles in India, including sales, service, and customer relationship managers, indicating a robust entry strategy.
This move comes as Tesla faces global sales challenges, with a 1.1% decline in 2024 deliveries (1.79 million vehicles) compared to 2023, marking its first annual drop in nine years. Waning demand in the US and Europe, intensified competition from Chinese rivals like BYD, and a falling average sales price (estimated at $41,000 in Q4 2024) have squeezed profit margins. India, the world’s third-largest auto market, offers growth potential, with EV sales surging 49% year-on-year in 2023 and a government target of 30% EV sales by 2030. However, high import duties (70-100%) and limited charging infrastructure pose challenges.
Recent policy changes, including a reduced 15% import tax for companies investing $500 million in local manufacturing, aim to attract Tesla, though Union Minister HD Kumaraswamy stated Tesla is currently focused on showrooms, not manufacturing, despite earlier interest in a local Gigafactory. Discussions between PM Narendra Modi and Elon Musk, alongside potential US-India trade deals, may further ease tariff barriers.
