Tesla, the renowned electric vehicle manufacturer led by Elon Musk, is making its first significant move into the Indian market by finalising a deal for a showroom in Mumbai's Bandra Kurla Complex (BKC), reported The Times of India. This showroom will cover a 4,000 square foot area in a commercial tower, marking a strategic entry into India, a burgeoning market for electric vehicles.
The lease agreement for this space is pegged at around Rs 35 lakh per month, one of the highest commercial rents in the region.
Following the Mumbai showroom, Tesla plans to open a second showroom in Delhi's Aerocity, demonstrating a focused approach on establishing a strong foothold in India's major urban centres. This expansion comes shortly after Elon Musk's notable meeting with Prime Minister Narendra Modi in the US. The dialogue signalled a potential alignment of interests between Tesla and India, fostering an environment conducive for Tesla’s entry.
However, not all in India are enthused. A few Redditors feel the Tesla BKC showroom is going to be unprofitable owing to the high rent. Recently, Zara's only independent store in Mumbai had to down the shutters in the heritage Ismail building at South Mumbai's Flora Fountain.
Reddit users also debate that Tesla will face fierce competition from Chinese EVs. "Honestly Tesla has no chance in the Indian market if the 110% to 15% import duty reduction applies to Chinese EVs too. No chance Tesla is competing with what BYD or MG are offering at the same price," a user shared.
Another challenge will be Indian roads. "Its self-driving mode will be hell on Indian roads," a user said.
Recently, Tesla shared job postings have opened up for positions in customer support, operations, and business support, primarily based in Mumbai and Delhi, on LinkedIn. These developments follow closely on the heels of the Modi-Musk meeting, indicating Tesla’s commitment to building a robust operational presence in India.
The company is also contemplating importing vehicles from its Berlin facility to India, initially targeting a price point below $25,000. This strategic pricing aims to make Tesla vehicles more accessible in the Indian market, where the starting price of Tesla models in the US is $35,000.