Elon Musk’s Tesla will open its first showroom in Mumbai next week, marking the US electric carmaker’s official debut in India. During the one-hour fifty-minute launch event held at Maker Maxity Mall in Bandra Kurla Complex on July 15, a Tesla “experience center” will be inaugurated, according to an event invitation seen by CNBC.
Apart from showcasing the company’s cars at the showroom, Tesla is also likely to begin direct sales in India. Tesla, which has been focusing on India for a long time, has now become active in ramping up its local operations. In April, Tesla CEO Elon Musk met Prime Minister Narendra Modi to discuss collaboration in the areas of technology and innovation. The same month, the company’s finance chief said that they are trying to decide very carefully when to enter India.
Though Tesla does not have any manufacturing operations in India yet, it is likely that the Centre will encourage the company to set up a factory. The cars sold in India will be imported from Tesla’s other manufacturing plants in Shanghai and Berlin.
CNBC mentioned that Tesla will face a tough competition from key Chinese rival BYD and Indian company Tata Motors as it begins sales in India. Import duty on electric vehicles in India is around 70%, which could be a big challenge for Tesla. The Indian government is proposing to reduce the import duty to 15% on the condition that companies invest $500 million and start local production to attract companies.
In June, India’s Heavy Industries Minister HD Kumaraswamy said that Tesla was not interested in manufacturing in the country, according to a Reuters report. Currently, Tesla is hiring staff in Mumbai for showroom operations, security, vehicle operators, and data collection for the autopilot feature. Apart from this, jobs have also been announced for some store manager positions in Delhi, but it is not yet clear if Tesla plans to open any showroom in Delhi.
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