Tesla's India entry begins July 15 with Mumbai showroom launch
What's the story
Tesla, the electric vehicle giant led by Elon Musk, is all set to enter the Indian market. The company will open its first experience center in Mumbai's Jio World Drive on July 15. This will be Tesla's first physical presence in India and it is likely to start retail operations with imported cars.
Vehicle arrival
Tesla has imported 5 units of Model Y from China
According to Bloomberg, five units of the Model Y have already reached Mumbai from Tesla's Shanghai factory. The cars were valued at ₹27.7 lakh (approximately $31,988) and attracted import duties of over ₹21 lakh. This is in line with India's 70% duty on fully built imported cars under $40,000 plus surcharges.
Pricing details
Price of imported Model Y
In India, the Model Y is likely to be priced at over ₹47 lakh ($56,000) before taxes and insurance. This is significantly higher than the ex-showroom price of $44,990 in the US before tax credits are applied ($37,490 post tax credits). However, the final price will be determined by Tesla based on its margin and positioning strategy in the country.
Market entry
Tesla sought lower import duties
Tesla's entry into India has been in the works for years. The company had earlier sought lower import duties and policy incentives to facilitate its entry. As part of India's effort to draw global carmakers and boost EV adoption, Finance Minister Nirmala Sitharaman had announced a cut in duties from 125% to 70%. She also waived basic customs duties on lithium-ion batteries for electric vehicles to reduce production costs and stimulate local manufacturing.
Growth plan
Tesla's first experience center will be in Jio World Drive
Tesla's first experience center will be located at Mumbai's Jio World Drive. The company signed a lease for the 4,000sq ft retail space in March. The site is near Apple's flagship store in the city. This move is part of Tesla's larger expansion strategy in India which includes leasing commercial spaces and setting up service facilities across the country.