Tesla to expand India footprint with Gurugram centre: A strategic push into a growing EV market

New Delhi: Tesla is set to strengthen its India footprint with the launch of its first full-fledged service and retail centre in Gurugram later this month, marking a significant step in its strategy to widen volumes and enhance visibility in a luxury EV market currently dominated by European players.

The expansion comes at a time when the US electric carmaker is grappling with global challenges, including slowing demand in China and increasingly cautious investors, prompting India to move higher on its strategic agenda. The Gurugram facility will follow the opening of Tesla experience centres in Mumbai and Delhi earlier this year.

India became Tesla’s 50th global market with the launch of two fully imported variants of the Model Y, priced from ₹59.89 lakh. With a 70 per cent import duty, the India-spec Model Y is among the company’s costliest offerings worldwide, roughly 30 per cent higher than its US prices.

Despite the steep pricing, early interest has been strong. Data from the Federation of Automobile Dealers Associations shows Tesla recorded 104 retail registrations during September and October, as per the Vahan portal.

The company is now relying on its India head, Sharad Agarwal, to accelerate momentum. Agarwal, who took charge last November, previously led Lamborghini India and held senior sales roles at Audi India, signalling Tesla’s intent to push harder in a market where Mercedes-Benz and BMW currently control nearly 80 per cent of luxury EV sales.

The development comes at a challenging moment for Tesla globally. The company’s September-quarter sales grew just 7 per cent year-on-year to 4,97,100 units, while its China deliveries fell to a three-year low of 26,006 units in October amid intensifying competition and weakening demand.

Tesla faces a crowded field in India’s premium EV segment, competing with models such as the BMW iX1, Mercedes-Benz EQA, Volvo EC40, Kia EV6 and BYD Sealion 7. The segment recorded sales between 460 and 480 units in October alone.

IANS