Tesla's California cool aura faces big test on Indian terrain
'Tesla is a much admired brand, not just in India but all over the world. In India, it is always seen as a cool brand given the fact that it is very popular with the Silicon Valley IT crowd and the budding tech millionaires in India also want to own one. So do the stock brokers and equity traders.' says
Ambi Parameswaran
, noted brand strategist and author.
Observers believe the charm lies in its disruption. On US roads, a Tesla is as common as a Toyota Camry and yet it still carries the sheen of Silicon Valley sophistication. It represents something far beyond transportation. In India, this halo still exists, albeit dimmed by sticker shock.
According to Sandeep Goyal, Chairman, Rediffusion, 'More than anything else, it is the badge value. To be one amongst your social and work group to own a Tesla gives you bragging rights - the glow of that social esteem is incomparable!'
Diminishing aura
The fact that the company has lost its aura in recent times thanks to competition from Chinese carmakers, especially BYD, could be of little consequence to buyers in India. Many are also aware that the electric movement is already underway here thanks to local brands which have thrown their hats into the ring.
'Maybe the Indian-made cars from Tata and Mahindra may be better, or BYD may be better, but Tesla has the California cool aura, so there will be a long waiting list,' says Parameswaran.
Vinay Raghunath, Partner, Automotive and Mobility Sector Leader, EY India, echoes these sentiments. 'Tesla's arrival marks a milestone in India's electric mobility journey. It will elevate consumer awareness, set benchmarks in connected and autonomous mobility, and prompt OEMs and ecosystem players to invest and innovate.'
Tesla is also about the charisma of its CEO, Elon Musk, who has a huge fan following among India's young techies who almost revere him. This kind of hero worship may not resonate across the US and Europe where the Tesla chief has faced a lot of heat in recent times.
The Elon Musk factor
He has also had a publicised falling out with US President, Donald Trump, and subsequently exited the White House administration. Musk has raised the hackles of many people in the West with his provocative comments but India could not care less.
'Tesla is an Elon Musk statement. It is a statement of futuristics married to technology. Therefore, Indians love the Tesla story,' reiterates Harish Bijoor, Business & Brand Strategy Expert, Founder – Harish Bijoor Consults Inc.
Perhaps, this may not be entirely true, argues V.G. Ramakrishnan, Managing Partner, Avanteum Advisors LLP. 'Tesla's aura in India has faded slightly from five years ago. Back then, it was the ultimate symbol of aspiration. Today, some of that sheen has worn of partly due to its pricing, Musk's polarising leadership and partly because American brands have struggled to localise in India. Apple is the exception; most others—Coke, Pepsi, Domino's—had to adapt to survive.'
High levies
In its turn, the company cannot ignore India either even while there have been constant cribs about the high import duty levels prevalent here. The Model Y shipped from Shanghai will, consequently, cost a bomb at over INR 60 lakh and it remains to be seen if this will still attract customers by the droves to Tesla showrooms.
The price tag immediately sparked a wave of memes online, with some branding the vehicle 'TAX‑LA.' On offer is the base Autopilot suite (Level 2 ADAS), while Tesla's full self-driving (FSD) package—currently restricted by Indian regulation—remains off-limits. Yet, this is of little consequence when the top priority is to test the waters here.
"Tesla or for that matter any other brand in the world of auto cannot ever ignore India. India is just too big to ignore. We host the largest number of potential consumers in the world, a wee bit of a notch above China as well. India is a "never mind the price" market at the top of the pyramid hierarchy of auto. This fact is scented by Tesla,' says Bijoor.
Gauging market response
The market response will also give the carmaker a better idea of its longterm business plan and if it makes sense to manufacture in India. Tesla's India debut has been long in the making—delayed by red tape, regulatory uncertainty, and Musk's well-documented standoff with India's high import duties.
"In many ways, Tesla delayed an Indian entry as far as possible till friendly tariffs fell into place. This is just yet to happen, but might just. Tesla does pack charm. Its charm is in its differentiation,' continues Bijoor.
While no 'friendly tariff' resolution is yet in place, Tesla has decided to test the waters. And true to its style, it arrives not as a mass-market disruptor, but as a high-end provocateur.
It's no secret that the Centre tweaked its electric vehicle policy to suit Tesla except that the company was in no mood to bite the bait. Whether the India-US trade pact will offer import duty concessions is also a moot point since there is now no love lost between Trump and Musk.
Tesla's influence is catalytic, rather than competitive—at least for now. With luxury EVs forming just 4 per cent of the 1.5–1.6 lakh EVs sold in the first half of FY25 (roughly 5,000–6,000 units), Tesla's positioning is elite, aspirational, and niche. It does not rival Tata, MG or Mahindra on volumes but its arrival will compel everyone, from automakers to policymakers, to look up and take notice. To what extent this attention or adulation will translate into sales remains to be seen.
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