Welcoming the EV maker, Anand Mahindra adds, ‘Competition promotes innovation. See you soon at the charging stations
Elon Musk’s company Tesla’s first store in India has opened at Maker Maxity Mall in Bandra Kurla Complex (BKC), Mumbai. Mahindra & Mahindra CEO Anand Mahindra welcomed Tesla by posting about this on X.
Welcome to India, Elon Musk and Tesla. One of the world’s largest EV markets just got more exciting. Competition promotes innovation, and there’s much more to come. See you at the charging station.
Tesla showroom will function as an experience centre
The Tesla store will function as an experience centre for people. This means that not only will the company’s electric cars be sold here, but people will also be able to closely observe Tesla’s technology and features.
According to India’s new EV policy introduced in 2024, if Tesla invests Rs 4,150 crore, the import duty will reduce from 70% to 15%. This could lead to lower prices for the company’s cars in the future.Some time ago, news came that Tesla was considering setting up factories in states like Gujarat, Maharashtra, Tamil Nadu and Telangana, but currently the company is focusing only on selling imported cars in India.
Major reasons for Tesla coming to India
1. Search for new markets due to decline in global sales
In 2024, Tesla’s sales dropped sharply in the U.S., Europe, and China, by up to 76% in Germany and 55% in Italy. With EVs making up only 5% of India’s auto market, Tesla sees growth potential here. EV sales in India rose 19.93% this year to 99,165 units.
2. India’s new EV policy
The new EV policy reduced import duty from 100% to 70%, provided the company invests Rs 4,150 crore in the EV sector. This will be reduced to 15% if local level manufacturing starts within three years. This gave Tesla the opportunity to import electric cars like Model Y with lower taxes
3. Demand in premium EV segment
The demand for luxury EVs is growing in India. Tesla’s Model Y (Rs 59.89-67.89 lakh) targets this segment, which will compete with BMW iX1 and Mercedes EQA. The Indian EV market is expected to sell more than 2.8 million electric vehicles by 2030.
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