Indian customers could receive first deliveries of Tesla cars in August

Tesla could begin its first set of deliveries in India in August as the company has announced plans to open its first showroom in the country on Tuesday. According to sources familiar with the matter, the Elon Musk-led firm plans to tap into the potential demand in the region.

Over the past few months, Tesla has recorded a decline in sales of its electric vehicles. However, with India’s status as the third-largest automobile market globally, the company could use the region to counter sales that have slowed in other markets.

The opening of the showroom in Mumbai will mark the formal entry of Tesla into the market, allowing potential customers to view and price available variants.

Tesla set to begin deliveries in India by August

According to documents examined by Bloomberg and a source that asked not to be identified, the showroom is expected to provide adequate options for potential customers when it eventually opens. However, deliveries are expected to start in late August, another source familiar with the matter said. The person added that customers can configure and order their Tesla EVs starting next week.

Earlier in March, reports claimed that the company had finalized the lease agreement of its first showroom location in Mumbai. Last month, Bloomberg mentioned that the Mumbai showroom was gradually being prepared for its opening this month, and the first set of cars, Model Y rear-wheel drive SUVs, shipped from Tesla’s factory in China, were billed to arrive in the country soon.

According to reports, the Tesla vehicles were valued at Rs. 2.7 million ($31,988), with an import duty of about Rs. 2.1 million. The duty is in line with the standard 705 tariff levied by India, plus additional levies on imported vehicles below the $40,000 mark.

The company had already started recruitment some months ago, intensifying it over the last few weeks in line with the opening which is scheduled to happen next week.

Slowed global sales push the EV maker to India

The Model Y remains the top-selling electric vehicle globally, and its popularity in India will help its acceptance despite the high import duties. The issue of the tariffs has been a major factor that Tesla has been considering in its plan to enter the Indian market, according to a statement from its Chief Financial Officer Vaibhav Taneja during its first-quarter earnings call.

The sources also mentioned that the company is working on another showroom, which is expected to be located around the New Delhi area. The second showroom will open towards the end of July. Tesla’s foray into India comes at a time when the company is recording a decline in global sales in the second quarter.

The slump countered Musk’s claim that the company has recovered from the blow it suffered as a result of his work with the Trump administration.

Last month, India’s Heavy Industries Minister Kumara Swamy confirmed that Tesla has not shown an indication that it intends to set up electric vehicle production in India. He added that the company only showed interest in setting up showrooms within the country. United States President Donald Trump has always voiced his opposition to Tesla’s possible manufacturing ventures in India, saying the move is very unfair.

Tesla has also had limited engagements with electric vehicle manufacturing programs in India. Although the electric vehicle maker participated in the initial stakeholders meeting about a scheme to promote the manufacturing of electric cars in India, it did not attend the next two consultation sessions.

However, it is expected that the company will send a representative to subsequent sessions after its showroom is set up in the coming week.

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