Tesla opens its largest Indian sales and service hub as the company battles weak demand. The new Gurugram facility combines a showroom, charging points and after-sales services in one location. The firm sold just over 100 cars since its highly publicised July debut, according to dealership data. People familiar with the company’s plans say Tesla now aims to strengthen India’s EV ecosystem to revive interest. Tesla did not give a direct response when asked about the low sales numbers.
Early expectations clash with market realities
The company has tried to gain traction in India since its July launch, after reports showed slightly more than 600 bookings by mid-September. Dealership figures reveal that only a small part of these bookings turned into completed sales once deliveries began in September. Premium rivals such as BMW, BYD and Mercedes Benz posted strong results, helped by festive demand and tax reductions.
Tesla prepares a path to rebuild momentum
Tesla plans a three-step strategy to drive adoption, grow charging networks and improve customer experience. Analysts say high taxes and slow EV adoption remain major obstacles. Tesla also faces the challenge of steep upfront prices. At the Gurugram launch, India head Sharad Agarwal said buyers can save up to two million rupees over four years through reduced fuel and maintenance costs. That saving equals roughly a third of the local Model Y price. Agarwal noted that Tesla completes many maintenance tasks via software, which lowers long-term costs. He also said home charging costs only a tenth of petrol prices.
Observers still see room for long-term gains
Automotive editor Hormazd Sorabjee said the current sales appear very low. He views this as a strategic starting point because Tesla has only begun building its presence. He believes the company has strong potential in the coming years. EVs represent less than three percent of India’s passenger vehicle market. Charging infrastructure grows slowly, with around 25,000 public chargers nationwide. Tesla cars can also charge at home and gain up to 70.8 kilometres of range each hour. The company expands its fast-charging network with superchargers that deliver about 170 miles of range in 15 minutes.
Global challenges affect Tesla’s India push
Tesla’s slow Indian sales occur during a broader demand dip across Europe, China and the United States. The company reported reduced profits in October despite record quarterly revenue driven by US buyers rushing to secure an expiring tax credit. Tesla said revenue for the three months ending in September reached 28 billion dollars, a twelve percent rise from last year. Profit fell by 37 percent during the same period because of higher tariff costs and increased research spending. Elon Musk shows little interest in setting up Indian manufacturing and continues to rely on imports despite new incentives designed to lure global EV makers.
