After years of playing hide and seek, American electric carmaker Tesla has finally confirmed India arrival with the launch of its first showroom opening in Mumbai on July 15. The first Tesla Experience Centre will be opening at Mumbai’s Bandra Kurla Complex, followed by another store launch expected in the National Capital.
As per sources, Tesla will start India operations by importing cars manufactured in its China facility. The company is reported to have imported a few Model Y cars from the Shanghai factory in China.
The particular model carries a price tag of around Rs 28 lakh per and will attract an import duty of more than Rs 21 lakh, given that India attracts a 70% tariff on imported cars priced below USD 40,000. The final ex-showroom price of Model Y is expected to be about Rs 50 lakh.
Last month, Tesla India took on lease 24,565 square feet warehousing space in Lodha Logistics Park in Mumbai for a period of five years. In June, Union Heavy Industries Minister H D Kumaraswamy stated that the Elon Musk-led company is not interested in manufacturing cars in India but keen on establishing showrooms in the country.
Earlier this year Commerce and Industry Minister Piyush Goyal had stated that India will not tailor its policies to suit Tesla, and its laws and tariff rules will be formulated to attract all-electric vehicle manufacturers from across the globe to set up a base in the world's fastest-growing economy.
The statement by ministers came as Tesla, which has been exploring opportunities in the Indian market for years, did not show any interest in India’s new electric vehicle (EV) policy that lowers import duties on electric cars.
This was a major blow for India given the policy fineprints were first announced when Tesla was showing interest and was lobbying extensively for a cut in import duty.
The company’s CFO Vaibhav Taneja in April had said that they are cautiously navigating an entry into the Indian market as high taxes remain a concern as this makes Tesla cars in India twice as expensive as it is in the US.
Tesla would also be arriving in India without a country head. The carmaker’s former country head for India - Prashanth Menon - had resigned from his post few months back. At present, Tesla's China teams is overlooking Tesla’s India operations.