Its maiden showroom to be inaugurated at Bandra Kurla Complex in Mumbai on July 15
New Delhi: In a move to push its sales of electric vehicles (EVs) in India, for the first time, global EV manufacturer Tesla, led by Elon Musk, is all set to enter the Indian market next week with the inauguration of its maiden showroom at Bandra Kurla Complex in Mumbai on July 15. The carmaker's first offering here will be the Tesla Model Y rear-wheel drive SUVs from its China plant.
Ahead of the launch, Tesla has reportedly imported about $1-million worth of cars and merchandise, marking its entry into the world’s third-largest car market. These imports are primarily from China and the US. The company is also hiring for various capacities in India to provide more jobs in the country.
The mega launch comes at a time when the Centre is driving a persistent campaign for massive use of EVs, saying that there is a need for a vibrant EV ecosystem as greater use of battery-run vehicles will cut carbon emissions as well as the staggering oil import bill. The government has previously invited Tesla to manufacture in India, while last year, Elon Musk was expected to announce a $2–3 billion investment in Indian operations during a planned visit, which was later cancelled.
However, industry sources said that the Elon Musk-owned firm has already sent out select invites presenting the inaugural event on July 15 as the ‘launch of Tesla in India’. “The Austin-headquartered company has already shipped the first set of cars, apparently Model Y rear-wheel drive SUVs from China and other select models will be showcased in the proposed event,” the sources said.
Despite Musk’s repeated 'disagreement' over the US tariffs on the auto sector, Tesla is bringing in these vehicles despite India’s high import duties — around 70 per cent — on foreign EVs. The move comes as the carmaker faces production surpluses and slowing demand in other key markets. The EV maker was seeking an initial tariff concession that would allow it to offset 70 per cent of customs duty for cars priced less than $40,000, and 100 per cent for cars of higher value.
Last month, Tesla India took on lease 24,565 square feet warehousing space in Lodha Logistics Park in Mumbai for a period of five years. In June, Union heavy industries minister HD Kumaraswamy stated that the electric carmaker is not interested in manufacturing cars in India but keen on establishing showrooms in the country.
US President Donald Trump has said that if Tesla were to build a factory in India to circumvent that country’s tariffs, it would be ‘unfair’ to the US. However, Musk had said in April last year that his visit to India had been delayed due to the company's heavy obligations.
However, earlier this year, Commerce and Industry Minister Piyush Goyal stated that India will not tailor its policies to suit Tesla, and its laws and tariff rules will be formulated to attract all-electric vehicle manufacturers from across the globe to set up a base in the world's fastest-growing economy.
