Winning Bizness Desk
Mumbai. Tesla has officially stepped into India with its first store in Mumbai’s Bandra Kurla Complex (BKC) at Maker Maxity Mall. The store, more of an experience center, allows customers to explore Tesla's electric vehicle technology up close. Anand Mahindra, CEO of Mahindra & Mahindra, warmly welcomed Tesla and Elon Musk on social media, highlighting the importance of competition in driving innovation. He recalled a 2017 post where he encouraged Elon to enter India, humorously saying the entire market shouldn’t be left to Mahindra alone.
Not just a showroom, but an experience center
The Tesla outlet will function as more than just a car showroom. It will act as an experience center where people can see, touch, and learn about Tesla’s technology and features. The store is expected to generate customer interest and build Tesla’s brand presence ahead of broader expansion. Although Tesla has plans to eventually localize production, for now, it will only sell imported vehicles in India.
India’s new EV policy could benefit Tesla
India introduced a new electric vehicle policy in 2024 to attract global EV giants like Tesla. According to the policy, companies investing ₹4,150 crore in India can benefit from import duty reductions—from 70% to just 15%. This move could allow Tesla to offer its vehicles at lower prices in the future, especially once local production begins within the three-year timeline required by the policy.
Why Tesla is turning to India now
Tesla’s global sales have declined in several regions. In 2024, the company saw drops of up to 76% in Germany and 55% in Italy. With the US, China, and Europe showing signs of saturation, Tesla is looking toward India—a market where electric vehicles still hold only around 5% share. In 2024, India sold over 99,000 EVs, a 19.93% jump from the previous year. For Tesla, this presents a valuable opportunity for growth in a largely untapped premium EV segment.
Tesla's premium EV push in India
Tesla’s initial launch will focus on high-end models like the Model Y, priced between ₹59.89 lakh and ₹67.89 lakh. This will place it in direct competition with luxury EVs such as the BMW iX1 and Mercedes EQA. The Indian market for premium EVs is expanding quickly, with expectations that more than 2.8 million EVs will be sold by 2030.
Rising competition in the Indian EV space
Tesla will face stiff competition from both domestic and international players. Tata Motors, with over 60% EV market share, offers models like the Nexon EV. Mahindra’s upcoming BE6 and XUV 9e are also positioned as potential Tesla rivals. Chinese brand BYD, Korean automaker Hyundai, and global luxury players like BMW, Audi, and Mercedes-Benz are already active in India. While Tesla holds an edge in technology and global brand value, local competitors offer stronger service networks and more affordable pricing.
Pointers at a Glance:
- Tesla opens its first India store at Maker Maxity Mall in Mumbai’s BKC.
- Anand Mahindra welcomes Tesla, says competition fuels innovation.
- Store to serve as experience center for showcasing Tesla’s tech.
- India’s new EV policy offers import duty cuts for investment.
- Tesla eyes India after declining global sales in key markets.
- Initial focus remains on imported cars, local manufacturing later.
- Tesla will compete with Tata, Mahindra, BMW, BYD, and others.
