Elon Musk, the world’s richest businessman, is fully prepared to enter the Indian market with Tesla. Contrary to popular belief that Tesla will open its first showroom in Delhi, the American electric vehicle giant has chosen Mumbai as the location for its debut store. This significant move marks Tesla’s entry into the highly anticipated Indian automotive market, following job postings in 13 positions across Delhi, Mumbai, and other areas. In this article, we delve into the details of Tesla’s plans in India, including the location of the showroom, implications of import tariffs, and job opportunities.
Where Will the First Showroom Be Located?
According to a report from the Times of India, Tesla has finalized a deal to establish its first showroom in the Bandra Kurla Complex (BKC) of Mumbai. This step is considered a crucial move towards Tesla’s highly anticipated entry into the Indian market. The lease agreement reportedly stands as one of the largest commercial lease agreements in the country.
As per the report, Tesla will occupy 4,000 square feet of space in the basement of a commercial tower in BKC, where it will display its car models. The monthly rental is about ₹900 per square foot, amounting to approximately ₹3.5 million per month, with the lease set for a period of five years.
Additionally, Tesla plans to open another showroom in Delhi’s Aerocity. The finalization of this agreement came shortly after Elon Musk’s meeting with Prime Minister Narendra Modi in Washington, following which Tesla posted 13 job vacancies in India, signaling its strong intentions to penetrate the Indian market.
India’s Influence on Tesla’s Strategy
Recent developments in February indicate that Tesla is likely preparing for launch in alignment with ongoing discussions concerning a bilateral trade agreement between India and the U.S., announced after a meeting between President Donald Trump and Prime Minister Modi. Currently, India imposes a hefty 110% import duty on vehicles, an issue raised by Trump, who argued that such high tariffs are pressuring Tesla towards establishing a manufacturing unit in the country.
Challenges of Selling Cars in India
In a recent interview, Trump stated that it would be “unfair” for Tesla to set up a factory in India to dodge these tariffs. He emphasized that every country benefits from the U.S. and that imposing such tariffs significantly complicates the sale of cars in India. Meanwhile, Musk has been advocating for lower tariffs, prompting the Indian government to consider drafting a new policy based on feedback from Tesla.
Tesla’s Recruitment Initiatives in India
Tesla has initiated its recruitment process in India. The electric vehicle manufacturer has listed 13 job opportunities on LinkedIn, covering roles in customer service, operations, and sales. Among these, five positions are available across Mumbai and Delhi, while the rest are based in Mumbai. Job vacancies include positions such as Inside Sales Advisor, Tesla Advisor, Service Advisor, Order Operations Specialist, Service Manager, Store Manager, Part Advisor, Business Operations Analyst, Service Technician, Consumer Engagement Manager, Customer Support Advisor, and Delivery Operations Specialist.
Pricing Strategy for Tesla in India
According to a report from CNBC-TV18, Tesla is considering importing cars from Berlin and selling them in India at the outset. The initial plan is to introduce electric vehicles priced below $25,000. In the U.S., Tesla cars start at a factory price of $35,000 (approximately ₹3.04 million), with the Tesla Model 3 being the cheapest option. Reports suggest that Musk has yet to commit to establishing a manufacturing unit in India, although Tesla is said to be sourcing components worth over $1 billion from India, a figure expected to rise significantly in the coming months.
Conclusion
Tesla’s entry into India not only signifies the growing potential of electric vehicles in the country but also challenges the existing automotive landscape. With plans for multiple showrooms and employment opportunities, Tesla’s move is a testament to India’s increasing importance in the global electric vehicle market.