Tesla to start deliveries in India from August: Report
What's the story
Tesla is set to open its first showroom in India on Tuesday, with vehicle deliveries expected to begin as early as next month, Bloomberg reports. The move signals the Elon Musk-led electric vehicle (EV) giant's formal entry into the world's third-largest auto market, as it seeks to offset slowing sales in other regions. Located in Mumbai, the showroom will offer customers details on pricing, available models, and trim options, according to the documents.
Scenario
Customers can configure and place orders starting next week
Tesla is likely to begin deliveries by late August, with customers able to configure and place orders for their EVs starting next week. Bloomberg previously reported that the Mumbai showroom was preparing for a mid-July launch, with the first batch of vehicles, Model Y rear-wheel drive SUVs imported from Tesla's factory in China, already having arrived in India. A second showroom, located in New Delhi, is expected to open by the end of July.
Performance
Tesla's sales declined in global markets during Q2
Tesla's long-anticipated debut in India comes at a pivotal moment for the EV giant, which reported a decline in global sales during the second quarter. The Model Y, currently the world's best-selling EV, will serve as a key test of Indian consumers' appetite for premium EVs amid steep import duties. These tariffs had been a major hurdle in Tesla's India plans, according to CFO Vaibhav Taneja during the company's Q1 earnings call.
Costs
Final retail price will be much higher than US price
Documents reviewed by Bloomberg last month revealed that five Model Y units were declared at around ₹27.7 lakh (around $32,270) each. With India's 70% import duty on fully built vehicles priced under $40,000, along with additional surcharges, the final retail price is expected to be significantly higher than the $46,630 US sticker price. Tesla's Mumbai showroom will initially open its doors to VIPs and business partners during the first week, followed by public access the week after.