Tesla is set to open its first full-fledged center in Gurugram, India, this month as it seeks to strengthen its presence in a market where it faces increasing competition.
NEW DELHI – Electric car manufacturer Tesla is preparing to enhance its presence in India with the opening of its first full-fledged center in Gurugram this month. This strategic move comes at a time when the U.S. automaker is grappling with significant challenges in global markets, prompting a renewed focus on India.
The Gurugram center follows the earlier launch of experience centers in Mumbai and Delhi, which were introduced earlier this year. These centers are part of Tesla’s broader strategy to establish a foothold in India, which became the company’s 50th global market when it introduced two variants of the fully imported Model Y, starting at Rs 59.89 lakh.
Despite facing a steep 70 percent import duty, making the Model Y one of the most expensive electric vehicles in the world, early sales data indicates a positive reception. According to the Federation of Automobile Dealers Association, Tesla registered 104 units in retail during September and October, as recorded on the Vahan portal.
To drive further growth in the Indian market, Tesla is relying on the leadership of Sharad Agarwal, who took charge as the company’s India head last November. Agarwal brings nearly a decade of experience in the luxury automotive sector, having previously led Lamborghini India and served as head of sales at Audi India. His appointment underscores Tesla’s commitment to expanding its market share in a region where German competitors, such as Mercedes-Benz and BMW, currently dominate nearly 80 percent of luxury electric vehicle sales.
The timing of this expansion is critical for Tesla. The company’s global sales saw only a 7 percent year-on-year increase, totaling 497,100 units in the September quarter. Additionally, Tesla’s deliveries in China fell to a three-year low of 26,006 units in October, amid intensifying competition and a cooling demand for electric vehicles.
The premium electric vehicle market in India is becoming increasingly competitive, with Tesla’s main rivals including the BMW iX1, Mercedes-Benz EQA, Volvo EC40, Kia EV6, and BYD Sealion 7. This segment recorded sales of between 460 and 480 units in October alone, highlighting the growing interest in electric vehicles among Indian consumers.
As Tesla prepares to launch its Gurugram center, it remains to be seen how effectively the company can navigate the challenges of the Indian market and compete against established luxury brands.
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