Tesla opens its largest sales and service hub in India while the company struggles with slow demand. The new Gurugram centre includes a showroom, charging facilities and after-sales support under one roof. The firm sold just over 100 cars since its widely promoted debut in July, according to dealership data. People familiar with Tesla’s plans say the company now aims to strengthen India’s EV ecosystem to revive sales. Tesla did not offer a direct reply when asked about the weak figures.
Tesla’s slow start challenges its early ambitions
The company has tried to secure a foothold in India since its July launch, after reports showed only slightly more than 600 bookings by mid-September. Dealership data indicates that only a small share of these bookings turned into completed sales after deliveries started in September. Competitors such as BMW, BYD and Mercedes Benz enjoyed strong festive-season demand and benefited from recent tax cuts.
Company outlines a three-step recovery strategy
Tesla plans a three-part approach to lift adoption, expand charging access and improve the overall customer journey. Analysts say high taxes and slow EV adoption continue to hold back growth in India. Tesla also faces the challenge of high upfront prices. At the centre’s launch, India head Sharad Agarwal said buyers can save up to two million rupees over four years through reduced fuel and maintenance costs. That amount equals roughly a third of the price of the local Model Y. Agarwal said Tesla handles most maintenance through software updates, which lowers overall costs. He also noted that home charging costs only a tenth of petrol prices.
Analysts still expect long-term opportunities
Automotive editor Hormazd Sorabjee said current sales look very low. He views the numbers as part of a strategic entry phase because Tesla is only beginning to build its presence. He believes the company can grow strongly in the future. EVs represent less than three percent of India’s passenger vehicle market. Charging infrastructure remains limited, with around 25,000 public stations nationwide. Tesla vehicles can charge at home and gain up to 70.8 kilometres of range each hour. The company continues to expand its fast-charging network with superchargers that add about 170 miles of range in 15 minutes.
Global headwinds add pressure in India
Tesla’s weak India sales come during a wider slowdown in Europe, China and the United States. The company posted lower profits in October despite reporting record quarterly revenue driven by a last-minute surge from US buyers securing an expiring tax credit. Tesla said revenue for the three months to September reached a record 28 billion dollars, a twelve percent increase year-on-year. Profit fell 37 percent in the same period due to higher tariff costs and additional research spending. Elon Musk has shown little interest in manufacturing in India and continues to rely on imports despite incentives introduced last year to attract global EV makers.
