Tesla (NASDAQ:TSLA) just opened its first showroom in India, aiming to reboot growth as sales soften in its core U.S. and China markets. The 4,000-square-foot location in Mumbai’s Bandra Kurla Complex debuted with two Model Ys on displaypriced at $69,757 and $79,000 depending on range. That’s significantly higher than U.S. pricing, a result of India’s punishing 70110% import tariffs. While the Mumbai showroom drew steady crowds on opening day, Tesla’s strategy here isn’t about volumeyet. Instead, this looks like a long game: testing demand, building brand equity, and setting the stage for deeper market penetration.
Tesla isn’t setting up local production for now, which means those steep prices aren’t coming down anytime soon. But the company is moving fast to lay the groundwork. Bookings are already open, deliveries are expected to begin as early as August, and Tesla plans to open a second store in New Delhi by month’s end. It’s also installing 16 Superchargers across Mumbai and Delhi and hiring locally to support after-sales service. According to Tesla’s Southeast Asia director Isabel Fan, the company expects to start handing over cars this quartersuggesting a near-term pipeline is already in motion.
The bigger picture? India could be Tesla’s next battleground, especially with BYD (BYDDF) gaining ground globally and German automakers like BMW and Mercedes-Benz already vying for Indian luxury EV buyers. With luxury cars accounting for just 1% of India’s auto market, the upside won’t be immediatebut it’s there. Analysts say the brand-first approach makes sense, especially if trade negotiations between the U.S. and India lead to lower tariffs down the line. Tesla shares ticked up 0.4% to $318.27 on the news, though the stock remains down roughly 21% year-to-date. For investors, India may not move the needle right awaybut it could reshape the map.
This article first appeared on GuruFocus.
