Tesla opens its largest Indian sales and service hub while it struggles with slow demand. The new site in Gurugram combines a showroom, charging points and after-sales services in one location. The company sold just over 100 cars since its much-publicised July launch, 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 offer a direct response when asked about the weak sales results.
Early interest fades as competition rises
The company has tried to secure a solid position in India since its July debut, after reports suggested slightly more than 600 bookings by mid-September. Dealership figures show that only a small portion of these bookings turned into completed sales once deliveries began in September. Premium rivals such as BMW, BYD and Mercedes Benz achieved strong numbers, helped by festive-season demand and recent tax cuts.
Tesla develops a plan to rebuild demand
The firm prepares a three-step strategy to lift adoption, expand charging access and improve the customer experience. Analysts say high taxes and slow EV uptake remain major hurdles in India. 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 about one-third of the price of the local Model Y. Agarwal noted that Tesla completes most maintenance through software updates, which reduces overall costs. He also said home charging costs only a tenth of petrol prices.
Analysts still predict long-term potential
Automotive editor Hormazd Sorabjee said current sales remain very low. He views this as a deliberate early phase because Tesla still builds its presence. He expects the company to grow strongly over time. EVs account for under three percent of India’s passenger vehicle market. Charging infrastructure expands slowly, with roughly 25,000 public stations nationwide. Tesla cars can charge at home and gain up to 70.8 kilometres of range each hour. The company also expands its fast-charging network with superchargers that add around 170 miles in 15 minutes.
Global headwinds deepen Tesla’s India challenge
Tesla’s weak India performance comes as demand slows across Europe, China and the United States. The company reported lower profits in October despite record quarterly revenue boosted 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, a twelve percent rise from last year. Profit fell by 37 percent due to higher tariff costs and increased research spending. Elon Musk shows little interest in building cars locally and continues to rely on imports despite incentives introduced last year to attract global EV manufacturers.
