Tesla reportedly close to starting sales in India

After years of eager anticipation and strategic deliberations, electric vehicle behemoth Tesla appears to be on the cusp of launching its highly awaited sales operations in India. According to a recent report by Bloomberg News, the company is preparing to inaugurate its premier showroom in Mumbai, with the initial wave of deliveries potentially commencing as early as August.

Further signaling its imminent entry into the Indian market, Tesla officially established a dedicated account for its Indian operations on Elon Musk’s social media platform, X (formerly Twitter). The account, named @Tesla_India, notably features a single post: an evocative illustration of the Mumbai skyline accompanied by the succinct caption, “Coming soon.” This digital footprint provides concrete evidence of the company’s advanced preparations for its Indian debut.

This strategic move into India aligns with Tesla’s broader global expansion efforts as it seeks to penetrate new markets amidst the maturation of existing ones, particularly with its current lineup of electric vehicles. Earlier this year, the company broadened its reach by commencing EV sales in the oil-rich nation of Saudi Arabia, as reported by Reuters, demonstrating a clear pattern of exploring new frontiers for growth.

However, entering the Indian market presents a unique set of challenges for Tesla, primarily concerning pricing and regulatory hurdles. Due to the current strategy of exporting fully-built vehicles to the country, these EVs will be subjected to a substantial 70% import duty. This significant tariff could considerably elevate vehicle prices, potentially impacting consumer accessibility and competitive positioning. Historically, Tesla had engaged in discussions with Indian government officials and reportedly came close to finalizing an agreement to establish a local manufacturing plant. Despite these promising talks, the company ultimately did not proceed with the factory deal, a decision that now directly contributes to the current import duty challenge.

The impending launch marks a pivotal moment for both Tesla and the burgeoning Indian EV market, promising to introduce a new dynamic to the country’s automotive landscape, despite the inherent complexities.