Tesla opens its biggest sales and service hub in India while facing slow demand. The new Gurugram centre hosts a showroom, charging facilities and after-sales services in one place. The company sold just over 100 cars since its widely promoted July debut, according to dealership data. People familiar with Tesla’s plans say the firm now focuses on strengthening India’s EV ecosystem to regain momentum. Tesla did not give a direct response when asked about the weak sales numbers.
Tesla’s expectations meet a difficult reality
The company has tried to establish itself in India since its July launch, after reports showed slightly more than 600 bookings by mid-September. Dealership figures reveal that only a small share of these bookings became completed sales once deliveries began in September. Premium rivals such as BMW, BYD and Mercedes Benz saw strong demand helped by festive spending and recent tax cuts.
Firm outlines measures to revive demand
Tesla plans a three-step strategy to lift adoption, expand charging networks and improve customer experience. Analysts say high taxes and slow EV uptake remain major obstacles. Tesla also faces the challenge of high upfront prices. At the Gurugram launch, India head Sharad Agarwal said buyers can save up to two million rupees over four years in fuel and maintenance. That saving equals roughly one-third of the local Model Y price. Agarwal noted that Tesla performs much of its maintenance through software updates, which reduces long-term costs. He also said home charging costs only a tenth of petrol prices.
Experts still believe in long-term opportunity
Automotive editor Hormazd Sorabjee said current sales remain very low. He sees this as an early strategic phase because Tesla still builds its presence. He expects strong growth potential in the future. EVs account for less than three percent of India’s passenger vehicle market. Charging infrastructure progresses slowly, with about 25,000 public stations nationwide. Tesla cars can also charge at home and gain up to 70.8 kilometres of range per hour. The company expands its fast-charging network with superchargers that deliver around 170 miles of range in 15 minutes.
Broader global slowdown adds pressure
Tesla’s weak India performance comes during a wider drop in demand across Europe, China and the United States. The company reported lower profits in October despite record quarterly revenue supported by a last-minute 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 from last year. Profit fell by 37 percent due to higher tariff costs and increased research spending. Elon Musk continues to show limited interest in setting up local manufacturing and relies on imports despite incentives introduced last year to attract global EV makers.
