New Centre Marks Fresh Attempt
Tesla opens its largest Indian hub as the company fights sluggish demand in Asia’s third-largest economy. The new Gurugram site offers an experience showroom, charging points and after-sales services in one place. Dealership figures show the company sold just over 100 cars in India after its widely promoted July launch. People close to the firm say Tesla now works to strengthen India’s EV ecosystem to regain momentum. The company does not issue direct answers on the weak sales numbers. The Elon Musk brand has faced difficulties since July and secured little more than 600 bookings by mid-September, according to press reports.
Rivals Gain Ground
Dealership data reviewed for this report shows only a small share of these bookings turned into real sales after deliveries began in September. Competing premium EVs from BMW, BYD and Mercedes Benz report strong numbers boosted by festive buying and tax cuts. Tesla plans a three-part strategy to lift adoption, expand the charging network and improve customer experience. Experts say high taxes and slow adoption still limit EV growth in India. The high upfront price of Tesla cars adds another hurdle.
Company Defends Long-Term Value
At the Gurugram launch, India head Sharad Agarwal says buyers can recover up to two million rupees in four years through fuel and maintenance savings, which equals a third of the Model Y price in India. He says most service work happens remotely through software updates, which lowers ownership costs, and home charging costs one tenth of petrol prices. Autocar India editor Hormazd Sorabjee says the company’s sales remain low by any measure but calls the approach strategic. He says Tesla has only placed its first foothold in India and still holds strong long-term potential.
Market Barriers Remain
EVs make up less than 3% of Indian passenger vehicle sales, and charging infrastructure expands slowly. India has roughly 25,000 charging stations. Tesla cars can charge at home and gain up to 44 miles of range per hour. The company expands its network with fast chargers that can add around 170 miles in 15 minutes. Tesla’s weak India sales also reflect softening global demand across Europe, China and the United States. The firm posted record quarterly revenue in October after a rush of buyers seeking an expiring tax credit, yet profits fell.
Global Pressure Adds Strain
The company reports $28bn in revenue for the quarter ending September, a 12% rise from last year. Profits drop by 37% due to tariff-related costs and research and development expenses. In India, Elon Musk shows little interest in local manufacturing and continues an import-led plan despite incentives announced last March to attract global EV makers.
