Tesla’s entry set to boost to EV penetration in India

The company is likely to sell only imported cars in the country and has no plans to manufacture EVs any time soon in India, according to reports
| Photo Credit:
TORU HANAI

As American automaker Tesla prepares to make its debut in Mumbai on Tuesday, car enthusiasts are thrilled but watchful of the company’s entry in the Indian automobile market. The much expected launch is expected to increase the electric vehicle penetration in India, according to experts and auto afficionados.

“Tesla cars are expected to be launched around ₹25-35 lakh, which is in the range of the vehicle I own currently. I’m excited for the launch; however, I will be watchful as to how the vehicles operate on Indian roads and terrains, and will then consider purchasing a Tesla,” said Kunal Thakkar, a Mumbai resident.

In an invitation to the media, the company stated that the launch will happen at the Tesla Experience centre in Bandra Kurla Complex, which is the city’s commercial district. “It is our pleasure to invite you to the launch of Tesla in India through the opening of the Tesla Experience Centre,” said the invite to the media.

“Tesla opening its first showroom in Mumbai signals that India is no longer on the sidelines of the global electric vehicle revolution. The entry is likely to give electric vehicle penetration a serious push. The brand has a strong aspirational pull that can change how people perceive electric vehicles, shifting them from niche to mainstream. It raises the bar for technology and performance, forcing other manufacturers to innovate faster,” said Nikhil Dhaka, Vice President at Primus Partners.

The company is likely to sell only imported cars in the country and has no plans to manufacture EVs any time soon in India, according to reports.

EV penetration

Experts have pointed out that Tesla’s entry in India will be a push to the electric vehicle penetration in the country. Along with Tesla, South Korean automaker Kia will launch its Clavis EV and Vietnamese automaker Vinfast will open bookings on VF6 and VF7 in India on Tuesday.

Range anxiety among buyers is also expected to reduce with increased charging infrastructure. “With its plans to invest in charging infrastructure, Tesla can help reduce range anxiety, one of the key barriers to EV adoption. Tesla’s presence could nudge the government to streamline EV-related incentives and investments,” said Dhaka.

 Tesla’s entry in India comes at a crucial point, wherein electric vehicle penetration in the country has increased, and Indian automakers are launching their own born electric vehicles. BEV in India has seen an increase in sales across metro and non-metro cities. India is expected to be a crucial market for electric vehicle giants, with declining electric vehicle sales in China and Europe.

Direct to Customer model

Tesla’s sales model involves direct selling to consumers through online and physical stores and not through the traditional dealership route. Dealers have raised eyebrows on issues the company could face with customer service.

“While Tesla operates with a direct-to-customer model and eliminates dealerships, vehicle services with consumers could be an issue in the niche markets in the country,” said CS Vigneshwar, President of the Federation of Automobile Dealers Associations (FADA).

Published on July 14, 2025