Latest news with #IsabelleFan
Mint
15-07-2025
- Automotive
- Mint
Tesla dares BYD, BMW, Merc in India's luxury lane
After years of wait, Tesla Inc. debuted its best-selling Model Y electric SUV in India, where it will face off against luxury EV makers like BYD, BMW and Mercedes-Benz. The arrival of the world's most valuable carmaker may intensify competition in India's luxury EV market but leave domestic EV-makers untouched, experts said. Tesla displayed two variants at its Mumbai experience centre thronged by visitors, journalists and security personnel. Deliveries of the lower model with an ex-showroom price of ₹ 59.9 lakh begin this quarter itself, while the longer-range with rear-wheel drive model priced at ₹ 67.9 lakh will arrive in the December quarter. Though the public and customers were not allowed inside the showroom for the event which was restricted to select media, dozens of enthusiasts crowded outside in the morning downpour, peering through glass walls and capturing photos. A Tesla employee based abroad expressed surprise at the unprecedented media turnout for at the showroom, which opens to customers on Wednesday. 'We are here to create the ecosystem to invest in the necessary infrastructure,' Tesla senior director Isabelle Fan told reporters. 'It will take some time to cover the whole country, but we're going to start with Delhi, Gurugram and Mumbai.' Tesla said it will set up four charging stations each in Mumbai and Delhi-NCR. Early customers also get a free wall charger for home. For Musk, the world's richest man, Tesla is the first of his several businesses to open shop in India. His satellite broadband business Starlink has received government approvals for launch, and is waiting for spectrum. In India, the Model Y will take on BYD's Sealion 7, BMW's iX1 and Mercedes-Benz EQA. 'With their pricing, Tesla is competing with the iX1 as well as i4 from BMW and BYD's Sealion7. Choices for customers will increase in that segment and hopefully the segment will grow and EV penetration increase in that price bracket,' said Subhabrata Sengupta, a partner at Avalon Consulting. India clocked sales of 107,645 electric passenger vehicles in FY25, up 18% from the previous year. While the number of electric luxury car sales remains small, BYD recorded a 90% jump in sales to 3,401, while Mercedes doubled sales to 1,133 units, according to Federation of Automobile Dealership Associations. BMW recorded a 9% increase in electric car sales to 1,550 units. When a brand like Tesla arrives, it tends to boost the entire segment by drawing curious customers to showrooms, said Puneet Gupta, director at market intelligence firm S&P Global Mobility. 'Due to its premium pricing, Tesla will mainly compete with brands like BMW and Mercedes. With the strength of its brand , technology and the excitement surrounding its entry, the company is likely to see increased interest as consumers look to experience something new and something which is global.' However, Tata Motors, Mahindra and Mahindra, Hyundai and MG Motors may be unscathed as their vehicles are available in the lower price ranges. 'I am confident that in the coming days, Tesla's entire ecosystem will be seen in India and Maharashtra,' chief minister Devendra Fadnavis said at the launch event, also attended by state transport minister Pratap Sarnaik. For years, Tesla delayed its India entry citing high tariffs. In its March quarter earnings call, chief financial officer Vaibhav Taneja called India a very hard market due to the tariff regime. "And especially under the current tariff structure in India, any car we send in is subject to a 70% import duty, plus a 30% luxury tax. So, the same car becomes 100% more expensive than what we sell it for elsewhere," Taneja had said. With India negotiating trade deals with the US and Europe, the company would be keeping an eye on whether there is any relief on tariffs for cars, which can significantly reduce prices of its cars. Tesla manufactures its cars in the US, China and Germany. According to a Bloomberg report, cars sold in India will be shipped from its factory in Shanghai, China.
Gulf Today
15-07-2025
- Automotive
- Gulf Today
Musk's Tesla opens first showroom in Mumbai
Tesla Inc. opened its first showroom in India on Tuesday, marking the electric vehicle maker's long-anticipated debut in the world's third-biggest automotive market. Located in the Bandra-Kurla Complex, an upscale business centre in the financial capital Mumbai, the showroom will serve as Tesla's flagship retail and experience outlet as the company introduces its EV lineup to Indian customers. Tesla's entry to India comes after years of delays and policy friction, marking a pivotal expansion in a fast-growing consumer base while global sales are plunging and the company faces challenges in its two core markets, China and the US. Rising investor confidence Sales of Tesla electric cars fell sharply from April to June as boycotts over Elon Musk's political views continued keeping buyers away. For India, Tesla's entry signals rising investor confidence and strengthens its move towards clean mobility. Isabelle Fan, Tesla South East Asia Director, poses with employees at India's first Tesla showroom in Mumbai. Reuters The country's nascent electric vehicle market made up a little more than 2% of total car sales last year. But the government wants to change that and increase the electric vehicle share to 30% by 2030. Tesla will begin by importing and selling its popular Y model cars in India. The base price would be 6.78 million rupees ($79,089) for the long-range, rear-wheel drive vehicle, according to a presentation by the company during the showroom launch on Tuesday. By comparison, the price tag is around $44,990 in the US without a federal tax credit. The rear-wheel drive will sell for around 6 million rupees ($70,000) in India. Delivery is expected to start from the third quarter, Tesla officials said. Tesla's higher pricing is likely to make its cars unaffordable for most Indians. Tesla will compete mostly with German luxury carmakers such as BMW and Mercedes Benz Group AG, and not budget Indian players like Tata Motors Ltd. and Mahindra & Mahindra Ltd. The luxury car market makes up just about 1% of total vehicle sales. World-class technology The debut by the American EV giant, however, would bring in world-class technology to the country, auto analyst Gaurav Vangaal said. "With deeper local investments, Tesla can accelerate India's EV ecosystem, drive innovation and support the government's goal of higher EV penetration,' said Vangaal, an associate director with S&P Global Mobility. CEO Elon Musk invited Indians in April 2016 to preorder the upcoming Tesla Model 3. Several customers placed an order but the cars never arrived and the booking amount had to be refunded. Police officers direct traffic outside the Tesla showroom ahead of its opening in Mumbai. Reuters Despite his earlier enthusiasm, in 2019 Musk expressed concern in a post on his social media platform X that import taxes could double prices of Tesla cars, making them "unaffordable.' Tesla pressed Indian authorities to cut import taxes on EVs, which were up to 100%, to be able to test the local market. New Delhi, however, wanted Tesla to set up manufacturing facilities so a comprehensive policy could benefit all the players in the sector. The dynamics changed after Modi and Musk met in the US in February during a state visit by Modi. Barely a month later, India rolled out a new policy to woo the likes of Tesla, reducing import taxes to 15% from 70% to 100% for EVs priced cheaper than $35,000 as long as the automaker committed to building a factory in the country within three years. Bilateral pact on the cards Soon after, Musk announced he would visit India in April to meet Modi. It was widely expected he would unveil Tesla's plans to set up manufacturing facilities and commit billions of dollars in investments. But Musk cancelled the visit, citing "very heavy Tesla obligations,' and travelled to China instead. Since then, Tesla has conveyed it does not have an immediate interest in manufacturing in India. US President Donald Trump has said it would be "unfair' to the US if Tesla builds a factory in India to circumvent that country's tariffs. India and the US are currently negotiating a bilateral trade agreement for greater market access and reducing tariffs on most goods, including automobiles. Besides bringing Tesla to India, Musk's India ambition has been to launch Starlink's commercial internet services. The plan got a boost recently after the company secured regulatory clearances. Starlink now needs to secure telecommunications airwaves from the government, which may take at least a couple of months, before the services are formally launched. Associated Press
