Gurugram hub opens to strengthen market presence
Tesla launches its largest Indian sales and service hub in Gurugram amid weak demand. The centre combines a showroom, charging stations, and after-sales services in one facility. Dealership data shows Tesla sold just over 100 cars since its heavily promoted July debut.
Sources close to the company say Tesla now focuses on building India’s EV ecosystem to boost sales. The company gives no direct response on its low sales figures. Reports indicate Tesla received just over 600 bookings by mid-September, but only a small share converted into deliveries. Competitors like BMW, BYD, and Mercedes Benz post strong sales, aided by festive demand and tax cuts.
Three-part strategy targets adoption and infrastructure
Tesla plans to increase adoption, expand charging networks, and improve customer experience. Analysts say high taxes and slow EV uptake continue to restrict growth. The steep upfront price of Tesla cars also challenges buyers.
At the Gurugram launch, India head Sharad Agarwal says buyers can recover up to two million rupees (22,400 dollars; 16,900 pounds) over four years through fuel and maintenance savings. He adds that remote software updates reduce ownership costs and home charging costs only a tenth of petrol prices.
Early sales reflect a careful market entry
Industry editor Hormazd Sorabjee says Tesla’s sales remain low by any standard. He views this as a deliberate entry strategy and expects stronger growth over time.
EVs account for less than three percent of India’s passenger vehicle market. Charging infrastructure develops slowly, with roughly 25,000 stations nationwide. Tesla cars can charge at home, adding up to 44 miles of range per hour. The company also expands superchargers that provide around 170 miles in 15 minutes.
Global slowdown affects India performance
Tesla’s weak India sales come amid broader cooling in Europe, China, and the United States. The company reports a profit decline in October despite record quarterly revenue driven by a last-minute surge from US buyers seeking an expiring tax credit. Revenue for the three months ending September reaches 28 billion dollars (21 billion pounds), up 12 percent from last year. Profits fall 37 percent due to higher tariffs and research spending.
In India, Elon Musk continues an import-led strategy and shows little interest in local manufacturing, despite incentives introduced last March to attract global EV producers.
