Tesla’s Slow Drive To India

THE TAKE 

Tesla Enters India With One Hand On Reverse Gear

There is usually a sequence for big car launches in India. Typically, we see display models at the Auto Expo in Delhi (now called the Bharat Mobility Global Expo), held every year. There was some buzz within media circles that Tesla was likely to make an appearance at the Expo in February 2024.

It did not. Instead, we were treated to a procession of rumours and leaks suggesting Tesla’s arrival was imminent, including talk of a grand entry announcement at the Vibrant Gujarat Summit in January last year.

Which, again, did not happen.

What we do seem to have, with some degree of finality, is a 4,000-square-foot showroom in Bandra Kurla Complex (BKC), Mumbai, with a similarly sized one expected in Delhi soon.

This size of showroom is adequate, slightly below the average, but certainly not a grand one.

It is also extremely unlikely that this would include anything else, such as a service centre.

To be fair, in Delhi and Mumbai, where rents are high, dealerships are often distinct from service centres, unlike in smaller cities and towns.

On the other hand, we have not yet heard of a service centre or network, though perhaps we will.

Apart from an Auto Expo or Bharat Mobility Expo display and launch, companies also tend to reveal their top leadership, usually experienced marketers from within and outside the automotive industry.

Tesla, of course, has shied away from all of this.

There could be several reasons for that.

Tesla Treads Lightly While India Waits For More

First, Tesla thinks like a mobile phone company, or more precisely, a company selling a computer on wheels, where there is limited engagement with the customer once the product is sold. At best, there might be firmware upgrades.

For the record, Tesla does have service centres and body repair centres, including for collision repairs in the US.

Second, this is a highly limited engagement and entry strategy for an expensive product—despite the lower duties—and therefore does not call for the launch intensity of a Hyundai, Toyota, Ford, or GM when they entered India.

Third, Tesla is entering India with clear wariness, which is quite evident.

Almost as though this is the best it can manage in the current circumstances, just enough to keep people happy or satisfied for now.

Or, to borrow an automotive analogy, Tesla is entering with one hand on the reverse gear.

You can’t really blame Tesla for that. It might reasonably feel that its products are at the higher end of the market—at least for now—and therefore do not warrant an aggressive entry strategy.

Unlike other manufacturers, Tesla is not investing in India yet and has pushed for concessions to enter on its own terms.

The most important of these is the demand to sell fully imported cars in India before considering any further plans.

You could compare this to Lamborghini’s strategy of exporting into India rather than manufacturing here.

Except that Lamborghini likely came on its own accord, without being chased incessantly for years, and to my knowledge, its CEO has not been courted the way Elon Musk has.

So the question, obviously, is why are we getting so excited about a company that seems less interested in India than India is in it, and that also appears deeply uncertain about the Indian market.

That’s a purely rhetorical question, of course.

The contrast is interesting.

As Tesla Hesitates, BYD And Indian Brands Step Up

Chinese companies like BYD (Build Your Dreams) are actively seeking more leeway in the Indian market.

BYD, which is now matching and overtaking Tesla’s global sales, showcased its Sealion 7 at the Bharat Mobility Expo 2025 in January, alongside its existing lineup of the ATTO 3 sport utility vehicle (SUV) and the eMAX 7 multi-purpose vehicle (MPV).

BYD’s cars stand out on Indian roads, as they are large, comparable to traditional cars in roominess, and fully electric.

BYD, unlike Tesla, is not positioned as a premium brand, making it arguably more suited to India at present. 

It already has 38 dealerships listed across the country and promises strong service support.

There are, of course, valid reasons why India has been cautious about Chinese companies, particularly in recent years.

But now, there are clear signs of a thaw in the India-China relationship.

With the United States, however, the situation seems quite the opposite—at least on trade.

Meanwhile, Tata and Mahindra are building momentum, with Mahindra’s new generation electric models already receiving bookings equal to one-third of India’s EV market.

Consumers Want Choices, Not Chasing Dreams

SP Singh, a listener of The Core Report podcast, had this to say:

"Let Chinese EV giants be allowed to bring their fully built-up high-end electric cars and SUVs into India on the same terms and conditions offered to Tesla. Then we should have free market play between Tesla, BYD, and Indian carmakers. Consumers in India deserve choices."

I would add that the government should listen to what consumers want—or are likely to want—rather than chase dreams.

Or, at the risk of being a little corny, perhaps pay more attention to the company that actually wants to build those dreams.

CORE NUMBER

Rs 82 trillion

This is the total value of India’s retail market, which more than doubled from Rs 35 trillion in 2014, according to a new report by Boston Consulting Group and the Retailers Association of India. This steady 8.9% annual growth is projected to accelerate over the next decade, with the market expected to surpass Rs 190 trillion by 2034. The study credits rising affluence and digital payments for fueling consumption, though 58% of purchases remain offline. However, such bullish forecasts may seem overly optimistic, especially as India’s GDP growth is slowing to 6.5% amid global headwinds and tighter liquidity.

👥 THE TEAM

✍️ Zinal Dedhia, Salman SH | ✂️ Rohini Chatterji | 🎧 Joshua Thomas