Is Tesla Expanding Its Footprint in India with a New Centre?
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Synopsis
Tesla is making significant strides in India with the upcoming launch of its first full-fledged centre in Gurugram. This move comes as the company aims to bolster its presence in a competitive market dominated by European luxury electric vehicle brands. Will Tesla succeed in carving out its niche amidst growing rivalry?
Key Takeaways
- Tesla's first full-fledged centre in India opens in Gurugram.
- The Model Y is among the most expensive EVs in the world.
- Initial sales data shows strong demand despite high prices.
- Sharad Agarwal aims to strengthen Tesla's brand in India.
- Competition in the luxury EV market is intensifying.
New Delhi, Nov 19 (NationPress) The electric vehicle manufacturer Tesla is gearing up to enhance its presence in India by inaugurating its inaugural full-service centre in Gurugram this month. This significant step is aimed at increasing sales volume and retail awareness in a market largely controlled by European luxury electric vehicle manufacturers.
This development occurs as the American automaker encounters considerable challenges globally, including diminishing demand in China and cautious investors domestically, prompting India to rise on its strategic agenda. The Gurugram facility follows the introduction of experience centres in Mumbai and Delhi earlier this year.
India was designated as Tesla's 50th international market after the release of two variants of the fully imported Model Y, which starts at Rs 59.89 lakh. With a 70 percent import duty, the Model Y is one of the priciest electric vehicles worldwide, costing approximately 30 percent more than in the US.
Despite its high price point, initial demand has been impressive. Data from the Federation of Automobile Dealers Association indicates that Tesla sold 104 units in September and October, as recorded on the Vahan portal.
The company is now relying on its new head in India, Sharad Agarwal, to drive further growth. Agarwal, who assumed his role last November, has nearly a decade of experience in the luxury automotive industry, having previously led Lamborghini India and held a sales leadership position at Audi India.
His appointment demonstrates Tesla's intention to delve deeper into a market where German competitors Mercedes-Benz and BMW currently hold about 80 percent of luxury electric vehicle sales.
The timing is critical. Tesla's global sales rose only 7 percent year-over-year to 497,100 units in the September quarter, while deliveries in China plummeted to a three-year low of 26,006 units in October due to escalating competition and waning demand.
The premium electric vehicle sector is becoming increasingly competitive, with Tesla's primary rivals in India including the BMW iX1, Mercedes-Benz EQA, Volvo EC40, Kia EV6, and BYD Sealion 7, in a segment that saw sales of 460 to 480 units in October.
Point of View
Tesla's entry signifies a deeper commitment to capturing a share of the lucrative luxury segment. However, the challenges posed by established competitors cannot be overlooked. It's crucial to monitor how Tesla navigates this competitive terrain.
NationPress
19/11/2025
Frequently Asked Questions
Where is Tesla's first full-fledged centre located in India?
Tesla's inaugural full-fledged centre in India is located in Gurugram.
What is the starting price of the Tesla Model Y in India?
The Tesla Model Y is priced starting from Rs 59.89 lakh in India.
Who is the new head of Tesla in India?
Sharad Agarwal is the new head of Tesla in India, bringing extensive experience in the luxury automotive industry.
What challenges is Tesla facing globally?
Tesla is currently facing challenges such as declining demand in China and cautious investors in the US.
Who are Tesla's main competitors in the Indian EV market?
Tesla's primary competitors in the Indian EV market include BMW, Mercedes-Benz, Volvo, Kia, and BYD.
