Tesla will open its first full-fledged India centre in Gurugram this month, strengthening its push in a market dominated by European luxury EVs. Despite high import duties, the Model Y has seen strong early traction. With new India head Sharad Agarwal, Tesla aims to boost visibility and compete with brands like Mercedes and BMW as global sales pressures mount.

New Delhi: Electric car-maker Tesla is set to bolster its India presence with the opening of its first full-fledged centre in Gurugram this month, marking a key milestone in its bid to expand volumes and retail visibility in a market dominated by European luxury EV makers.

About The Move

The move comes at a time when the US carmaker is facing stiff headwinds globally — from slowing demand in China to cautious investors back home — pushing India higher on its strategic priority list. The Gurugram centre follows the launch of experience centres in Mumbai and Delhi earlier this year.

India became Tesla's 50th global market after it introduced two variants of the fully imported Model Y, priced from Rs 59.89 lakh onwards. With a 70 per cent import duty, the India-bound Model Y is among the most expensive anywhere in the world, around 30 per cent higher than its US price tags.

Yet, notwithstanding the premium pricing, early traction has been remarkable. Data from the Federation of Automobile Dealers Association reflects that Tesla registered 104 units in retail during September and October, as registered on the Vahan portal.

The company is now banking upon its new India head, Sharad Agarwal, to build momentum. Agarwal, who took charge last November, brings nearly a decade of experience in the luxury automotive space, having led Lamborghini India and served as head of sales at Audi India.

His appointment signals Tesla's intent to push deeper into a market where German rivals Mercedes-Benz and BMW currently command almost 80 per cent of luxury EV sales.

The timing is crucial. Tesla’s global sales grew just 7 per cent year-on-year to 4,97,100 units in the September quarter, while its China deliveries dropped to a three-year low of 26,006 units in October amid rising competition and cooling demand.

Competition in the premium EV field is getting increasingly crowded, with Tesla's main rivals in India being the BMW iX1, Mercedes-Benz EQA, Volvo EC40, Kia EV6, and BYD Sealion 7 in a segment that recorded sales of 460 to 480 units in October alone.

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