Tesla To Open First Showroom In Mumbai Next Month

SUMMARY

Tesla’s first set of cars, Model Y rear-wheel drive SUVs, have already arrived in the country from the company’s factory in China’s Shanghai

The EV maker has also imported supercharger components, car accessories, merchandise and spare parts from the US, China and the Netherlands

As per the report, the cars that were shipped to India were declared at INR 27.2 Lakh ($31,988) and attracted more than INR 21 Lakh ($24,000) in import duties

After years of back and forth, EV giant Tesla is all set to make its India debut next month. The Elon Musk-led automaker is reportedly gearing up to open its first showroom in the country in July.

As per Bloomberg, Tesla’s first set of cars, Model Y rear-wheel drive sport utility vehicles (SUVs), have already arrived in the country from the company’s factory in China’s Shanghai.

While Tesla plans to open its first showroom in Mumbai by mid-July, it is also looking to open another one in New Delhi. In preparation for this, the EV maker has also imported supercharger components, car accessories, merchandise and spare parts from the US, China and the Netherlands.

As per the report, the cars that were shipped to India were declared at INR 27.2 Lakh ($31,988) and attracted more than INR 21 Lakh ($24,000) in import duties. The Model Y will reportedly go on sale for more than $56,000 (INR 48.5 Lakh), excluding taxes and insurance.

For context, India levies 70% customs duty on fully-built imported cars under $40,000.

However, the EV maker is yet to take a call on the final price of the Model Y in India, which will be based on its “margin and positioning strategy”.

Meanwhile, Tesla is said to have stepped up hiring across various verticals in India, including charging, retail and policy teams. The company plans to expand its presence in the country by offering more models, lease warehouse space in Karnataka and expand its existing warehouse capacity in Gurugram.

Tesla’s India Play

The EV maker has been looking to enter the Indian market for quite some time but has been at odds with Indian authorities over high tariffs and mandates for local manufacturing. However, amid decline in its sales in Europe and China, the EV maker is finally entering India.

Setting up a showroom is the most recent development in its multiple attempts to introduce its products in India. Tesla reportedly signed a lease agreement recently to open its first showroom in the country in Mumbai’s Bandra Kurla Complex (BKC).

Just weeks ago, reports also surfaced that Tesla had leased a new warehouse space in Mumbai, which would be used as a service centre. It is pertinent to note that the company’s Indian subsidiary, Tesla India Motor & Energy, has signed a five-year lease for 24,565 square feet at the Lodha Industrial and Logistics Park in Kurla. Tesla will reportedly pay a monthly rent of INR 37.53 Lakh, totalling INR 24 Cr over the lease term.

In April, Tesla leased a 30-seater space in the co-working hub of Phoenix Market City near BKC. As per its website, the company started hiring for about 30 positions in India in various functions.

While the company moves to establish its presence through showrooms in India, it seems to have put the manufacturing plans in the country on the back burner. Earlier this month, Union minister of heavy industries HD Kumaraswamy said that Tesla is looking to start operations in India but is currently not interested in manufacturing in the country.

“We are not expecting to see interest from Tesla. They are only looking to start operations through showrooms and are not interested in manufacturing in India,” Kumaraswamy said.

In April, Tesla had raised concerns about the high import tariffs in India. Calling India a “very hard market” for Tesla, the company’s CFO Vaibhav Taneja said that India’s current tariff structure is a roadblock for its India entry.