Tesla to Open Mumbai Showroom In July : How Much Will it Cost In India?

Tesla to Open Mumbai Showroom In July : How Much Will it Cost In India?

It’s a great news for Tesla’s EV car lovers who were expecting Tesla’s EV car’s entry into India.
Tesla is all set for its entry into Indian market with its first showroom which is expected to open in Mumbai in July as per the Bloomberg report.

Elon Musk’s EV Cars would officially enter the Indian market. It would be a good scope for Tesla as India is the third largest car market. Please note that Tesla has faced a slump in sales of the cars in European as well as the Chinese markets.
The next showroom is also expected to open in the capital of India i.e in New Delhi.

According to the Bloomberg’s report Tesla has already started the import of its first batch of Model Y electric SUVs and other necessary components.
This shipment consists of supercharger units, branded merchandise,spare parts and vehicle accessories which were sourced from the United States,Netherlands and China.

It’s important to know that Tesla’s model Y is currently the world’s best selling electric vehicle which has been imported from Tesla’s Shanghai Gigafactory.
Five rear wheel drive units has been shipped to Mumbai each valuing at Rs 2.77 million.
As per India’s 70% tariff on completely built units(CBUs) these vehicles have incurred import duties which exceeds Rs 2.1 million per unit(which values under $40000 plus other levies).

Pricing Challenge : Can Tesla Compete?

Now talking about the price,Tesla is expected to assess the price of the model Y above $56000 excluding taxes and insurance in India which is definitely higher than its US base price of $44990 or $37490 after tax incentives.

The premium pricing can be a major hurdle to make a genuine appeal to India’s largely cost sensitive consumer base.

If talking about electric vehicles they make up just over 5% of new passenger vehicle registrations in India and in case of luxury or premium vehicles they account for less than 2% of total market.
Tesla will have to navigate this economic landscape while establishing its brand footprint in India.

Showrooms and Strategic footprint 

Despite previous delays arising from disputes over import duties in demands for local manufacturing,
Tesla is now appearing to show its commitment to establishing operations.

As you must be knowing that Tesla’s country head for India Mr.Prashanth Menon has already resigned and now the company’s operations in India are being taken care by Tesla’s China teams.
Currently the EV maker is actively hiring for roles in retail, charging infrastructure and public policy.
On the other hand Tesla is also securing warehouse facilities in Karnataka and trying to expand its capabilities in Gurugram near Delhi to support its logistics in better manner.

What’s Next for Tesla in India?

Definitely the imports of Model Y indicates Tesla’s tentative but the strategic entry into India.It has a plan to expand its portfolio and observe the market response before ramping up the operations.
No doubt high import cost and market price sensitivity is a major barrier for Tesla but Tesla’s long term commitment will depend on the fact that how Tesla can balance the premium branding with the localised strategies.

Conclusion :Though It’s a great news for Tesla’s EV car lovers who were expecting Tesla’s EV car’s entry into India. But Indian Car customers are price sensitive.Tesla will have to face many competitive challenges.
Tesla’s long term commitment will depend on the fact that how Tesla can balance the premium branding with the localised strategies.

Disclaimer : This article has been written based on the informations available on the internet and official website of the brand. If you want to know more details about the model then it’s kind request to visit the brand’s official website.