Tesla to open 1st Indian showroom in mid-July
What's the story
Tesla is gearing up to launch its first showrooms in India as early as mid-July, according to Bloomberg News.
The move marks the start of formal operations for Elon Musk's electric vehicle (EV) giant in the world's third-largest automobile market.
The company's first batch of cars, Model Y rear-wheel drive SUVs from its China factory, has already arrived in India.
Showroom details
Tesla's 1st Indian showroom will be in Mumbai
Tesla's first Indian showroom will be in Mumbai, with another one planned for New Delhi.
The company has also imported Supercharger parts, car accessories, merchandise, and spares from the US, China, and the Netherlands.
This move brings an end to a long-standing saga of Tesla's entry into India, a market Musk has been eyeing but was hesitant to enter due to tariffs and local manufacturing issues.
Strategic meeting
Breakthrough after Musk-Modi meeting
The breakthrough for Tesla's entry into India came after a strategic meeting between Musk and Indian Prime Minister Narendra Modi in the US in February.
Bloomberg News had reported earlier this year that Tesla was preparing to ship a few thousand cars to a port near Mumbai.
So far, five Model Y vehicles have arrived in Mumbai from Tesla's Shanghai factory.
Import challenges
Import duties on Model Y
The five Model Y vehicles that arrived in Mumbai were declared at ₹2.77 million ($31,988) and attracted over ₹2.1 million in import duties.
This is in line with India's 70% tariff on fully-built imported cars under $40,000 plus surcharges.
The model is expected to go on sale for more than $56,000 before taxes and insurance, although Tesla will set the final price based on its margin and positioning strategy.
Pricing strategy
Tesla's challenges in India
The premium price tag of the Model Y will be a major hurdle for Tesla as it will have to convince value-driven consumers to shell out more.
EVs account for just over 5% of new passenger vehicle sales in India, but premium cars still represent less than 2% of the market, data from the Indian government's vehicle registration portal shows.
Despite this challenge, Tesla is pushing ahead with its plans and has been hiring across charging, retail, and policy teams.