Amid mounting global challenges, electric vehicle giant Tesla is preparing to deepen its India footprint with the launch of its first full-fledged centre in Gurugram later this month. The move marks a significant step in Tesla’s ambition to scale volumes and enhance retail presence in a market currently dominated by European luxury EV manufacturers.
The expansion comes at a moment when the US carmaker is grappling with multiple pressures worldwide—from waning demand in China to increasingly cautious investors back home. These headwinds have pushed India higher on Tesla’s strategic priority list. The upcoming Gurugram facility will follow the opening of experience centres in Mumbai and Delhi earlier this year.
India became Tesla’s 50th global market when the company introduced two fully imported variants of the Model Y, priced from ₹59.89 lakh onwards. Owing to a steep 70% import duty, the India-spec Model Y is among the most expensive globally—costing nearly 30% more than its US counterpart.
Despite the heavy duty and premium pricing, Tesla’s early momentum has been strong. Data from the Federation of Automobile Dealers Association (FADA), based on Vahan portal records, shows that Tesla registered 104 retail units during September and October.
The company is now banking on its India chief, Sharad Agarwal, to accelerate growth. Agarwal, who took over in November last year, brings nearly a decade of luxury automotive experience, including stints as Lamborghini India’s head and Audi India’s head of sales. His appointment highlights Tesla’s intention to carve out a larger space in a market where German brands—Mercedes-Benz and BMW—currently control nearly 80% of luxury EV volumes.
Tesla’s renewed thrust into India comes at a critical juncture. The company recorded a modest 7% year-on-year growth globally in the September quarter, delivering 4,97,100 units. Meanwhile, its China sales fell sharply to a three-year low of 26,006 units in October, amid intensifying competition and a broader decline in EV demand.
The premium electric vehicle segment in India is also heating up rapidly. Tesla faces stiff competition from the BMW iX1, Mercedes-Benz EQA, Volvo EC40, Kia EV6, and BYD Sealion 7—models that contributed to total segment sales of 460 to 480 units in October alone.
With its first full-fledged centre set to open in Gurugram, Tesla is gearing up to strengthen its retail and service infrastructure and push harder for market penetration in India—its newest and increasingly crucial frontier.