Will Tesla’s Entry Reset India’s High-End Luxury Car Market?

The big news is Elon Musk’s Tesla, the global electric vehicle (EV) giant, is smelling serious business opportunities in India. Tesla finally made a symbolic official entry into India on July 15 with Maharashtra CM Devendra Fadnavis inaugurating the showroom located in BKC, Mumbai. On display was Tesla’s imported luxury premium Model Y from its China factory. Sources say, this will act as a foundation when Tesla decides to bring in low cost models for the Indian market at a later stage. For now, Tesla has priced its SUV’s around Rs 60 lakh. Other models will be rolled out over the next 12 months. Does this development mean serious competition for players marquee brands like BMW, Mercedes, VinFast and BYD? Sources say, “For Tesla it’s early days. What is known as of now is the economy model will be introduced once they get good hang of the market.” Apart from Mumbai, Tesla’s second showroom will be opened in New Delhi by end-July. The reasons why Tesla is focusing on its EV luxury segment through its Mumbai and Delhi show rooms now is to rev up demand for China made SUVs, assess business opportunity to justify India’s own production base eventually. For now, Tesla’s job is to focus on India’s demand and build brand awareness.