Tesla opens its biggest sales and service hub in India while it faces weak demand. The new centre in Gurugram offers a showroom, charging points and after-sales services in one place. The company sold just over 100 cars since its heavily promoted July launch, according to dealership figures. People familiar with Tesla’s plans say the firm now aims to strengthen India’s EV ecosystem to rebuild momentum. Tesla did not provide a direct comment when asked about the low sales results.
Tesla confronts a tougher market than expected
The company has tried to establish a foothold in India since its July debut, after reports showed slightly more than 600 bookings by mid-September. Dealership data indicates that only a small share of these bookings became completed sales once deliveries began in September. Premium rivals including BMW, BYD and Mercedes Benz recorded strong sales, supported by festive demand and recent tax reductions.
Company outlines steps to revive interest
Tesla plans a three-step strategy to increase adoption, expand charging capacity and improve customer experience. Analysts say high taxes and slow EV uptake remain significant barriers in India. Tesla also faces the challenge of steep upfront prices. At the Gurugram launch, India head Sharad Agarwal said buyers can save up to two million rupees over four years through reduced fuel and maintenance spending. That figure equals about one-third of the local Model Y price. Agarwal said Tesla performs much of its maintenance through software updates, which cuts ownership costs. He also stressed that home charging costs only a tenth of petrol prices.
Experts still see space for long-term growth
Automotive editor Hormazd Sorabjee said current sales look very low. He sees this as part of a gradual entry because Tesla is still building its presence. He believes the company offers strong growth potential over time. EVs account for less than three percent of India’s passenger vehicle sales. Charging infrastructure expands slowly, with around 25,000 public chargers nationwide. Tesla vehicles can also charge at home and add up to 70.8 kilometres of range per hour. The company continues to expand its fast-charging network with superchargers that add roughly 170 miles of range in 15 minutes.
Wider global pressures shape Tesla’s India performance
Tesla’s weak India sales come as the company faces a broader slowdown across Europe, China and the United States. The firm reported lower profits in October despite record quarterly revenue driven by a late surge from US buyers seeking an expiring tax credit. Tesla said revenue for the three months to September reached 28 billion dollars, up twelve percent year-on-year. Profit dropped 37 percent during the same period due to higher tariff costs and increased research spending. Elon Musk continues to show limited interest in local manufacturing and relies on imports despite new incentives introduced last year to attract global EV makers.
