Tesla likely to begin first deliveries in India from August

Tesla Inc. will open its first showroom in India on Tuesday and begin deliveries as early as next month, according to people familiar with the matter, as the Elon Musk-led electric vehicle maker looks to tap potential demand in the third-largest automobile market to counter slowing sales elsewhere.

The opening of the Mumbai showroom will mark the formal entry of Tesla into the market, giving prospective customers access to pricing, available variants and trim options, according to one of the people, who asked not to be identified as the information is private, as well as documents seen by Bloomberg News.

Deliveries are expected to start from late August, a separate person familiar with the development said. Customers will be able to configure and order their Tesla EVs from next week, the person added.

Bloomberg News first reported last month that the Mumbai showroom was gearing up for a mid-July opening and the first set of cars — Model Y rear-wheel drive SUVs shipped from Tesla’s China factory — had arrived in the country.

A second Tesla showroom — this one in New Delhi — is poised to open in late July, the people said.

Tesla’s long-awaited entry into the Indian market comes at a crucial time for the EV maker, which saw a slump in global sales in the second quarter that ran counter to Musk’s claim that business had recovered from blowback over his work in the Trump administration.

Tesla representatives did not immediately respond to an email seeking comments on the India rollout plans.

The Model Y is the world’s top-selling electric car and its popularity in India will offer insight on consumers’ acceptance of high import duties. Hefty tariffs had been a major factor weighing on Tesla’s decision around when to enter the Indian market, Chief Financial Officer Vaibhav Taneja said during the automaker’s first-quarter earnings call.

Documents reviewed by Bloomberg News last month show five Model Y units were declared at roughly 2.77 million rupees each, or about $32,270 apiece. Taking into account India’s 70% import tariff on fully built imported cars under $40,000, plus additional surcharges, the cars are likely to sell at a substantial premium to the roughly $46,630 they go for in the U.S.

The first week of the Mumbai showroom’s operations will focus on VIPs and business partners, with the general public being granted access the following week, said the people familiar with the plans.

Sachdev writes for Bloomberg.