Tesla to Open First Showroom in India Amid Global Sales Slowdown

• Tesla will launch its first showroom in Mumbai next month, followed by Delhi.
• The company is importing parts from the US, China, and the Netherlands under India's revised EV policy.
• Union Minister HD Kumaraswamy confirmed Tesla has no current plans to manufacture in India.

The automobile manufacturer Tesla is gearing up to launch in India. The company owned by Elon Musk is set to launch its first showroom in Mumbai. The showroom is set to open next month in the world’s third-largest automobile market. Reports indicate that Tesla is experiencing a drop in sales in Europe and China.

Reports indicate that the company is expected to launch its first showroom in Mumbai, followed by Delhi. The electric vehicle leader has allegedly begun importing parts and accessories from the US, China, and the Netherlands.

The firm will be permitted to ship a maximum of 8,000 units each year to India with a significantly lowered duty of 15 percent. Previously, there were claims that Tesla aimed to bring Tesla vehicles into India and later sell them via their showrooms in the country.

Tesla CEO Musk has previously expressed interest in investing in India, but the "high import duty" regulations were a source of disagreement. Tesla’s intention to enter India has grown stronger following the country’s announcement of its new EV policy, which reduced import duties to 15 percent and offered various incentives for establishing a manufacturing facility in India.

On June 2, during a press conference, Union Minister for Heavy Industries HD Kumaraswamy informed reporters that Tesla, owned by Elon Musk, is not keen on manufacturing in India and is instead focusing on opening showrooms.

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“Tesla, we are not actually expected from them, they are only to start showrooms. They are not interested in manufacturing in India,” the minister said.

Heavy Industry Secretary Kamran Rizvi added, “So the real intent we’ll know when we open the application and if the company still feels like investing. What minister sir is telling is about what people they come and told informally.”

The minister, however, noted that several European firms such as Hyundai, Mercedes Benz, Skoda, and Kia have expressed interest in establishing manufacturing facilities in India under the new EV policy.

The newly announced EV policy in 2022 provides various concessions for businesses that invest in India and establish manufacturing facilities.