Elon Musk-led Tesla is set to open its first showroom in India next week. The new showroom for Tesla’s electric cars will open in Mumbai on July 15, according to a Reuters report. With this the Musk-led electric vehicle manufacturer takes a step towards starting operations in India, the world’s third-largest automotive market.Earlier in March, it was reported that Tesla had finalised a lease agreement for its first showroom location in Mumbai, marking its entry into the Indian market.
Tesla India Plans
Tesla’s entry into India comes at a time when the EV maker is facing reduced sales in Europe and China.According to a Bloomberg report last month, the first Tesla deliveries to India consist of Model Y rear-wheel drive SUVs, manufactured at the company’s Chinese facility. The Model Y currently ranks as the world’s most popular electric vehicle.According to the report, Tesla has brought five Model Y vehicles to Mumbai from its Shanghai plant. These vehicles were valued at 2.77 million rupees ($31,988), with an import duty exceeding 2.1 million rupees. This duty corresponds to India’s standard 70% tariff, plus additional levies on fully imported vehicles priced below $40,000.A few months ago, the electric vehicle company intensified its recruitment efforts for its Indian operations. Another showroom is expected to open in Delhi-NCR.
No ‘Make in India’ For Tesla
Last month, Heavy Industries Minister Kumara Swamy confirmed that Tesla has shown no inclination towards setting up electric vehicle production units in India, with their interests limited to establishing showrooms within the country.US President Donald Trump has frequently voiced his opposition to Tesla’s possible manufacturing ventures in India, labelling such potential developments as ‘very unfair’.Tesla’s engagement with India’s electric vehicle manufacturing programmes has been minimal.Although Tesla participated in the initial stakeholder meeting about the Scheme to Promote Manufacturing of Electric Cars in India, they did not attend the subsequent two consultation sessions.
