Tesla is finally in India and that's all that really matters

Time of India

16-07-2025

The Roman calendar would term the
Tesla
launch date in India the Ides of July which is the 15th day of the month. The more popular reference point for historians is, of course, the Ides of March, the day Julius Caesar was assassinated way back in 44 BC.
The Tesla event clearly cannot be termed historic but the date will be remembered for some days to come simply because it finally marked the advent of a long awaited brand in India. For years, its CEO had constantly hinted at an entry into this market while everyone else salivated in eager anticipation.
In those days, one little negative note by way of a tweet on India's high import duties would lead to state governments pleading with Elon Musk to consider setting up a plant in their respective regions. At the level of the Centre too, an electric vehicle policy was also formulated keeping Tesla in mind. The only hitch was that its CEO was still not biting the bait till it became formally known that Tesla would not manufacture cars in India.
Then came the dramatic announcement of the July 15 inaugural of the new showroom in Mumbai and all hell broke loose with everyone jostling for an invitation. For the entry of such a big brand, the planning was shambolic at least as far as the media planning was concerned.
Disruptions galore
The venue was witness to chaos as journalists and cameramen struggled to enter the Tesla Experience Centre at Bandra-Kurla Complex, or BKC as it is more fashionably known, which has now taken over from the once famous Nariman Point as the city's go-to business address. The constant rains led to massive traffic jams and delays but this did not deter those who were keen to be part of this big day when Tesla would unveil its Model Y.
Never mind that these were fully built cars imported from China, a country at loggerheads with India even while remaining its largest trading partner. Slapping massive import levies of over 70 per cent means that the Model Y will literally cost a bomb though that will hardly matter to a section of celebrities and high net worth individuals who remain smitten by the brand.
This was more than evident at the BKC event when Tesla dominated the social media space when two other automakers, Kia and VinFast, also had significant announcements to make. Come rain, traffic jams or crowd mismanagement, the Ides of July were finally about Tesla. Nothing really mattered by the end of the day.
The company representatives at the venue remained tightlipped on specific plans going forward except to make known that charging stations would also spread to Lower Parel, Thane and
Navi Mumbai
beyond BKC.
Also Read: Tesla India launches Model Y at ₹61.07 lakh; full self-driving feature to roll out soon
Spreading its wings
The next big footprint would be Delhi and neighbouring Gurugram with a similar model of a single experience centre and three more locations housing charging stations. It is only logical to assume that Tesla will eventually expand its presence to Bengaluru, Hyderabad, Pune and Chennai as part of the India growth plan.
Will kits continue to be imported from China? If the US and India agree to slash import duties on automobiles in their new trade policy, will this then prompt Musk to ship cars out of his home country instead? Likewise, if the proposed FTA between India and the EU sees a slash in import duty for cars, Tesla may look at despatching them from its Berlin facility.
Musk has of course made a detour to politics even while he had a public falling out with US President, Donald Trump. Right now, there is little love lost between the two and this has led to speculation that the US-India trade pact may not have too much leeway for Tesla on the import duties front. But then, Ford is also working on an India comeback plan and Trump may be inclined to support the company while perhaps urging Harley-Davidson to have another shot in this part of the world.
The bigger question is if Tesla will succeed in India with its limited volumes. There is no question that Musk is almost revered in this country as the man who made electric vehicles a fashionable word. Indians are also comfortable with American brands and the country still remains a huge draw for students and professionals. Beyond just a Tesla, there is greater familiarity with brands such as McDonald's and KFC or American comic superheroes like Batman, Superman and Spiderman.
Also Read: Tesla is finally here. Will India be able to power it?
Price does matter
Yet, Indian buyers are equally concerned about what they perceive as the value-for-money proposition. The Model Y does not come in cheap and is way more expensive than what is now available from the stables of Tatas, Mahindras, JSW MG or Hyundai. What Tesla offers in their view is perhaps a greater pride of ownership given its allure as a brand even while it has been losing ground to Chinese brands such as BYD.
In Europe, Tesla sales have been in free-fall mode for many months now and Musk's own popularity has taken a nosedive since the time he moved into politics. India has not encountered any such adverse reactions and both Tesla and Musk remain iconic brands. BYD is one of the few Chinese players present in the country but, with severe curtailments on investment, has not made a big dent in this market.
This will be good news to Tesla since China has proved to be a huge adversary in the electric vehicle arena. The country's troubled relationship with India has not helped its cause in allowing its automakers to set up base here. Those like SAIC which operate here using MG as its face have already made known that they are looking at a complete exit. Till India and China bury the hatchet, there is no threat of Chinese EV brands flooding the market and ruling the roost.
The arrival of Tesla is big news for India since it has been waiting for this big day for years now. It is of little consequence that the numbers sold will be limited and not pose any threat to existing players. The presence of this American brand by itself will be a reason to feel chuffed about.